Tag: Iran

  • Greek Debt Mess: Uncertainty over Europe

    On Monday, June 29, global stock markets were reeling from the news out of Greece. Dow Jones was down by 350 points. With many global crises like Ukraine, ISIS, Syria, Iran nuclear deal already threatening to tip the world into chaos, the one crisis that could undermine not only the Eurozone itself but international financial structure is Greece and its monstrous debt crisis.

    While the Wall Street collapse of 2008 is supposed to have impacted many economies driving them into recession, the main reason for the Greece debt is the structural imbalance in the Greek economy in the form of high debt to GDP ratio.

    The implosion of the Greek economy in 2009 led to the fear that the Greek government would not be able to service its high debt obligations thus leading to sovereign debt crisis. As a result, Greece was unable to borrow on the international markets and had to turn to International Monetary Fund, European Central Bank and the European Commission to seek the bailout to avoid the impending financial crisis.

    But the bailouts did not come cheaply. Too many strings were attached to it. The Greek government was required to carry out numerous painful reforms: pensions were supposed to be reduced, tax receipts were to be streamlined by curbing tax evasions, steep tax hikes were required to be implemented to generate more revenue, and deep budget cuts were to be put in place.

    The result of all these attached conditions was the absolute impoverishment of the population which was already reeling under the hardships due to ongoing recession.

    This caused resentment among the population and resulted in the resounding victory of anti-austerity Syriza party in January which campaigned on the promise of ending painful bailout agreement.

    The two sides – EU and Syriza – are now at loggerheads. Syriza wants significant reduction in debt and more leeway in how it raises its tax revenues while protecting the pensions and other public obligations while EU is demanding significant reduction in pensions and steep VAT tax hike to increase the revenue. This has led to an impasse.

    The deadline for the loan repayment program that was extended in February has expired on June 30th, and given the fact that Greece is already on the verge of bankruptcy, missing the deadline means Greece would be held in default of IMF loan – a first developed nation to do so. How the dominoes would fall as a result of its default, nobody knows.

    And, this is driving the markets and the central banks all over the world nervous: How to prevent the contagion from spreading if Greek economy and banking system collapses?

    On top of it, Syriza has decided to seek referendum of the people – which will be held on July 5th – whether to accept the bailout agreement or leave euro. As of now, the mood of both Syriza and EU towards each other has become more hardened.

    Even though Greek Prime Minister Tsipras has now sent another letter to EU accepting lenders’ conditions but with modifications, given the fact that the deadline for agreeing to the new debt program has already expired, the letter seems to be too little, too late.

    Since there is no debt deal to talk about, July 5th’s referendum has become moot. It would be seen as nothing but a referendum on whether to stay in EU or not. EU has taken note of the letter submitted by the Greek government but has decided to stick to its guns and is waiting for the outcome of July 5th referendum before commenting on the contents of the letter.

    As of now, the “No” vote to the “troika” proposed bailout deal is in majority. And, if “No” vote wins in the referendum, then it would be anybody’s guess how the resulting scenario would unfold for Eurozone and its banking system.

    Quite a mess and a very big dark cloud over Eurozone and its economy.

  • Indian Americans Preet Bharara & Rakesh Khurana honored with Carnegie’s ‘Great Immigrant’ award

    Indian Americans Preet Bharara & Rakesh Khurana honored with Carnegie’s ‘Great Immigrant’ award

    NEW YORK (TIP): The Carnegie Corporation has announced the 2015 “Great Immigrant”: The Pride of America” awardees. These are the individuals who have helped advance and enlighten our society, culture, and economy. Preet Bharara, U.S. Attorney, Southern District of New York is among 38 eminent personalities selected as 2015 ‘Great Immigrant’ honorees, on the eve of the nation’s birthday on July 4th by Carnegie Corporation.

    The other Indian American awardee, Rakesh Khurana is the Marvin Bower Professor of Leadership Development at Harvard Business School (HBS), professor of sociology in the Faculty of Arts and Sciences (FAS), and co-master of Cabot House and dean of Harvard College.

    “Our founder, Andrew Carnegie, came to this country as the son of impoverished immigrants and grew up to become one of the greatest contributors to American industry and philanthropy,” said Vartan Gregorian, President of the Corporation. “His devotion to U.S. democracy stemmed from his conviction that the new infusion of talent that immigrants bring to our country keeps American society vibrant.”

    The 38 Great Immigrants honored this year come from more than 30 countries around the world and represent leadership in a wide range of professions.

    They include:

    • Preet Bharara S. Attorney, Southern District of New York (India)
    • Geraldine Brooks Pulitzer Prize-winning Author, Journalist (Australia)
    • Thomas Campbell Director and CEO, The Metropolitan Museum of Art (England)
    • Rabia Chaudry Attorney, Civil Rights Activist (Pakistan)
    • Mica Ertegun Interior Designer (Romania)
    • Stanley Fischer Economist; Vice Chair, Board of Governors, Federal Reserve System (Israel)
    • Jonathan Hunt Fox News, Chief Correspondent (Canada)
    • Malek Jandali Composer, Pianist (Syria)
    • Rakesh Khurana Professor, Dean, Harvard College (India)
    • Marie-Josée Kravis Economist, Philanthropist (Canada)
    • Nastia Liukin Olympic Medal-winning Gymnast (Russia)
    • Bette Bao Lord Author, Human Rights Advocate, Philanthropist (China)
    • Ali Malekzadeh President, Roosevelt University, Chicago (Iran)
    • Silvio Micali Turing Award-winning Professor of Computer Engineering (Italy)
    • Lorne Michaels Peabody Award-winning TV Producer (Canada)
    • Franziska Michor Vilcek Prize-winning Professor, Computational Biology (Austria)
    • Anchee Min Author (China)
    • Sharmin Mossavar-Rahmani Philanthropist; Chief Investment Officer, Private Wealth Management Group, Goldman Sachs (Iran)
    • Firouz Naderi Director, Solar System Exploration, NASA Jet Propulsion Laboratory (Iran)
    • Azar Nafisi Author, Scholar (Iran)
    • Craig Nevill-Manning Engineering Director, Google (New Zealand)
    • Maria Otero U.S. Under Secretary of State for Civilian Security, Democracy, and Human Rights (Bolivia)
    • Eddie Pérez Bullpen Coach, Atlanta Braves (Venezuela)
    • Ilana Rovner Judge, U.S. Court of Appeals, Seventh Circuit (Latvia)
    • Arturo Sandoval Grammy Award-winning Jazz Trumpeter (Cuba)
    • Madhulika Sikka Vice President, Executive Editor, .Mic (India)
    • Thomas C. Südhof Nobel Prize-winning Neuroscientist (Germany)
    • Antonio M. TagubaS. Army Major General, Retired (Philippines)
    • Ann Telnaes Pulitzer Prize-winning Political Cartoonist (Sweden)
    • Thalía Singer, Actress (Mexico)
    • Tuyen Tran Vilcek Prize-winning Fashion Designer (Vietnam)
    • Abraham Verghese Physician, Professor, Author (Ethiopia)
    • Eugene Volokh Professor, Legal Scholar, Blogger (Ukraine)
    • Arieh Warshel Nobel Prize-winning Biochemist (Israel)
    • Raffi Yessayan Judge, Massachusetts Superior Court (Lebanon)
  • Israel’s Netanyahu says better Iran deal still possible

    JERUSALEM (TIP): Israel’s prime minister says world powers can still insist on a better deal with Iran over its nuclear program as the negotiators’ self-imposed deadline rapidly approaches.

    Benjamin Netanyahu told a graduating class of pilots Thursday that “it is still not too late to insist on a good deal.”

    Iran and six world powers are racing to meet a June 30 deadline for a deal that would limit Tehran’s nuclear activities in exchange for lifting sanctions.

    Netanyahu has dubbed it a “bad deal,” saying it would leave Iran with the ability to rapidly obtain nuclear weapons. Israel views a nuclear-armed Iran as its greatest potential threat.

    Iran insists its nuclear program is for purely peaceful purposes.

  • US says Iran nuclear deal deadline may ‘slip’

    US says Iran nuclear deal deadline may ‘slip’

    VIENNA (TIP): High-stakes talks to nail down a historic deal with Iran to curtail its nuclear programme may “slip” past a June 30 deadline, a top US official admitted on June 25 ahead of crunch weekend negotiations in Vienna.

    “We may not make June 30, but we will be close,” the senior official told reporters as top US diplomat John Kerry prepared to head Friday for what could be the last talks between Iran and global powers on the deal.

    The official said the target date to finalise the historic deal — the main outlines were agreed in April in Lausanne, Switzerland –would only “slip” by a few days.

    “The intent of everybody here — the P5+1, the European Union, Iran — is to stay until we get this done, or find out we can’t. And our intent is to get it done,” the official told reporters, asking not to be named.

    Others, including Iranian Foreign Minister Mohammad Javad Zarif, who is due in Vienna on Saturday, have said the deadline may be missed by a few days but until now Washington had insisted it still aimed to get a deal on schedule.

    “We can truly see a path forward that gets us to a very good agreement here. We know what the pieces of it are,” the US official said, adding that in the end, Iran was facing
    “critical choices.”

    Kerry, addressing reporters after unveiling an annual rights report, said he was “always hopeful… I’m not conferring optimism, but I’m hopeful.”

    Iran, which has engaged in something of a rapprochement with the West since the election of President Hassan Rouhani in 2013, denies wanting nuclear weapons, saying its nuclear programme is exclusively peaceful.

    Under the Lausanne framework, which was also agreed several days late, Iran will downsize its nuclear activities in order to make any attempt to make a nuclear weapon all but impossible.

    This includes Iran cutting the number of centrifuges enriching uranium, which is used in nuclear power but also for a bomb when highly purified, as well as slashing its uranium stockpiles and changing the design of a new reactor.

    In return, UN and Western sanctions that have caused Iran major economic pain would be progressively lifted, although the six powers insist they can be easily “snapped back” in place if Tehran violates the accord.-

    – Spanners in the works –

    French Foreign Minister Laurent Fabius will also arrive in Vienna on Saturday, an aide said Thursday, while a source in Brussels said EU foreign policy chief Federica Mogherini was expected “this weekend.”

    The mooted final accord between Iran and the “P5+1” — Britain, China, France, Russia and the United States plus Germany — will be a highly complex agreement 40-50 pages long, including several appendices.

    It will set out an exact timetable of sanctions relief and reciprocal steps by Iran, as well as a mechanism for handling possible violations by either side.

    Tricky issues include how UN sanctions might be re-applied, the reduction of Iran’s uranium stockpile and its future research and development on newer, faster types of centrifuges.

    Iran must also address lingering questions about the possible military dimensions of its nuclear program to the satisfaction of the UN watchdog, the IAEA.

    Amid unease in Iran’s conservative-dominated parliament that Tehran is giving too much away, the country’s supreme leader, Ayatollah Ali Khamenei, on Tuesday appeared to throw several spanners in the works.

  • India set to ramp up engagement with Tehran

    NEW DELHI (TIP): India is reopening its engagement with Tehran even as a game-changing nuclear deal between Iran and world powers looks potentially around the corner. After Nitin Gadkari’s visit to the Iranian capital in May to sign an MOU on the Chahbahar port, foreign secretary S Jaishankar will be in Tehran on Saturday for political consultations.

    While India had reduced its oil imports from Iran during the US sanctions, it will be keen to restart the trade relationship as well as push the Iranian leadership to expedite the necessary clearances for building the Chahbahar port. India has even set up a special purpose vehicle (SPV) India Ports Global, to handle the port project.

    India would want to revive its oil interests in Iran as well. India, Afghanistan and Iran have signed a transit agreement, and India is keen to build the connections through Iran into Afghanistan and central Asia. The port and its attendant railway lines, once built, would give India an alternative to Pakistan’s Karachi port.

    Foreign minister Sushma Swaraj has already said she would be visiting Iran in the coming weeks for bilateral and NAM consultations. After engaging its immediate neighbourhood and east Asia, the Indian government is working on the Connect Central Asia project.

    Prime Minister Modi will be visiting all the five “Stans” during his trip to Ufa, Russia for the BRICS summit.

  • The Ukraine imbroglio

    The G-7 nations put on a brave face against Russia at a summit held this week in the Bavarian Alps and decided to continue their sanctions against President Vladimir Putin for what they called his war in Ukraine. U.S. President Barack Obama in fact accused Mr. Putin of “wrecking his country in pursuit of a wrong-headed desire to recreate the glories of the Soviet empire”. Russia countered by warning that it would prolong its own counter-sanctions, indicating there would not be any change in its Ukraine policy. While all this is happening, a fresh outbreak of violence between government troops and pro-Russian separatists in eastern Ukraine is threatening to derail a tenuous ceasefire. Ukraine is paying a heavy price for this stand-off. It has lost Crimea to Russia, is fighting a deadly civil war in the east, and its economy is in a state of collapse, it having contracted by nearly 18 per cent in the first quarter of 2015.

    The real crisis of Ukraine is that it is caught in a game of one-upmanship between the West and Russia. The West wants to punish Russia for its annexation of Crimea and for helping separatists in eastern Ukraine. Moscow, on the other hand, sees Western involvement in the ouster of Ukraine’s pro-Moscow President Viktor Yanukovych, and seems determined to resist the North Atlantic Treaty Organisation’s outreach to its backyard. If the West’s real intention is to get Russia to change its policy towards Ukraine, it should rethink its sanctions regime, which has been demonstrably ineffective over the past 15 months. Supporters of the sanctions might argue that those worked in the case of Iran and might work in Russia’s case as well. But Russia is not Iran. It is a geopolitical giant, a former superpower and a huge country that still has substantial leveraging power in Central Asia and Eastern Europe. Given the way policy-making works in the Kremlin, it is illogical to believe that any kind of coercion would work against Mr. Putin. Besides, there is little to suggest that the Western policy of isolating Russia is working at all. More than a year after Russia was suspended from the G-8 following its annexation of Crimea, the leading powers still need Russia to deal with pressing global issues ranging from the Iranian nuclear talks to the Syrian civil war. So a more pragmatic approach would be to start a diplomatic engagement in a mutually conducive environment. The inept handling by both sides of what was a domestic issue in Ukraine has turned it into a regional problem. Left unchecked, the problem could well turn into a war. It is high time the West and Moscow set aside rhetoric and started addressing the problem directly.

  • ‘The Challenge of Journalism is to Survive in the Pressure Cooker of Plutocracy’

    ‘The Challenge of Journalism is to Survive in the Pressure Cooker of Plutocracy’

    Thank you for allowing me to share this evening with you. I’m delighted to meet these exceptional journalists whose achievements you honor with the Helen Bernstein Book Award.

    What happens to a society fed a diet of rushed, re-purposed, thinly reported “content?” Or “branded content” that is really merchandising — propaganda — posing as journalism? But I gulped when [New York Public Library President] Tony Marx asked me to talk about the challenges facing journalism today and gave me 10 to 15 minutes to do so. I seriously thought of taking a powder. Those challenges to journalism are so well identified, so mournfully lamented, and so passionately debated that I wonder if the subject isn’t exhausted. Or if we aren’t exhausted from hearing about it. I wouldn’t presume to speak for journalism or for other journalists or for any journalist except myself. Ted Gup, who teaches journalism at Emerson and Boston College, once bemoaned the tendency to lump all of us under the term “media.” As if everyone with a pen, a microphone, a camera (today, a laptop or smartphone) – or just a loud voice – were all one and the same. I consider myself a journalist. But so does James O’Keefe. Matt Drudge is not E.J. Dionne. The National Review is not The Guardian, or Reuters The Huffington Post. Ann Coulter doesn’t speak for Katrina Vanden Heuvel, or Rush Limbaugh for Ira Glass. Yet we are all “media” and as Ted Gup says, “the media” speaks for us all.

    So I was just about to email Tony to say, “Sorry, you don’t want someone from the Jurassic era to talk about what’s happening to journalism in the digital era,” when I remembered one of my favorite stories about the late humorist Robert Benchley. He arrived for his final exam in international law at Harvard to find that the test consisted of one instruction: “Discuss the international fisheries problem in respect to hatcheries protocol and dragnet and procedure as it affects (a) the point of view of the United States and (b) the point of view of Great Britain.” Benchley was desperate but he was also honest, and he wrote: “I know nothing about the point of view of Great Britain in the arbitration of the international fisheries problem, and nothing about the point of view of the United States. I shall therefore discuss the question from the point of view of the fish.”

    So shall I, briefly. One small fish in the vast ocean of media.

    I look at your honorees this evening and realize they have already won one of the biggest prizes in journalism — support from venerable institutions: The New Yorker, The New York Times, NPR, The Wall Street Journal and The Christian Science Monitor. These esteemed news organizations paid — yes, you heard me, paid — them to report and to report painstakingly, intrepidly, often at great risk. Your honorees then took time — money buys time, perhaps its most valuable purchase — to craft the exquisite writing that transports us, their readers, to distant places – China, Afghanistan, the Great Barrier Reef, even that murky hotbed of conspiracy and secession known as Texas.

    And after we read these stories, when we put down our Kindles and iPads, or — what’s that other device called? Oh yes – when we put down our books – we emerge with a different take on a slice of reality, a more precise insight into some of the forces changing our world.

    Although they were indeed paid for their work, I’m sure that’s not what drove them to spend months based in Beijing, Kabul and Dallas. Their passion was to go find the story, dig up the facts and follow the trail around every bend in the road until they had the evidence. But to do this — to find what’s been overlooked, or forgotten, or hidden; to put their skill and talent and curiosity to work on behalf of their readers — us — they needed funding. It’s an old story: When our oldest son turned 16 he asked for a raise in his allowance, I said: “Don’t you know there are some things more important than money?” And he answered: “Sure, Dad, but it takes money to date them.” Democracy needs journalists, but it takes money to support them. Yet if present trends continue, Elizabeth Kolbert may well have to update her book with a new chapter on how the dinosaurs of journalism went extinct in the Great Age of Disruption.

    You may have read that two Pulitzer Prize winners this year had already left the profession by the time the prize was announced. One had investigated corruption in a tiny, cash-strapped school district for The Daily Breeze of Torrance, California. His story led to changes in California state law. He left journalism for a public relations job that would make it easier to pay his rent. The other helped document domestic violence in South Carolina, which forced the issue onto the state legislative agenda. She left the Charleston Post and Courier for PR, too.

    These are but two of thousands. And we are left to wonder what will happen when the old business models no longer support reporters at local news outlets? There’s an ecosystem out there and if the smaller fish die out, eventually the bigger fish will be malnourished, too.

    A few examples: The New York Times reporter who rattled the city this month with her report on the awful conditions for nail salon workers was given a month just to see whether it was a story, and a year to conduct her investigation. Money bought time. She began, with the help of six translators, by reading several years of back issues of the foreign language press in this country… and began to understand the scope of the problem. She took up her reporting from there. Big fish, like The New York Times, can amplify the work of the foreign language press and wake the rest of us up.

    A free press, you see, doesn’t operate for free at all. Fearless journalism requires a steady stream of independent income. It was the publisher of the Bergen Record, a family-owned paper in New Jersey who got a call from an acquaintance about an unusual traffic jam on the George Washington Bridge. The editor assigned their traffic reporter to investigate. (Can you believe? They had a traffic reporter!) The reporter who covered the Port Authority for the Record joined in and discovered a staggering abuse of power by Governor Chris Christie’s minions. WNYC Radio picked up the story and doggedly stuck to it, helped give it a larger audience and broadened its scope to a pattern of political malfeasance that resulted in high-profile resignations and criminal investigations into the Port Authority. Quite a one-two punch: WNYC won a Peabody Award, the Record won a Polk.

    A Boston Phoenix reporter broke the story about sexual abuse within the city’s Catholic Church nine months before the Boston Globe picked up the thread. The Globe intensified the reporting and gave the story national and international reach. The Boston Phoenix, alas, died from financial malnutrition in 2013 after 47 years in business.

  • A way with the world

    A way with the world

    The Prime Minister, Narendra Modi, scored most in foreign policy in his first year in power. No one anticipated Modi’s natural flair for diplomacy, to which he has brought imagination and self-assurance. Modi has been more emphatic than his predecessors in giving improvement of relations with neighbors greater priority. He invited all the SAARC leaders to his swearing-in, to signal that the decisive election victory of a supposedly nationalist party did not denote a more muscular policy towards neighbors. On the contrary, India would take the lead in working for shared regional peace and prosperity.

    Bhutan, the only neighbor that has not politically resisted building ties of mutual benefit, was the first country he visited in June, 2014. He handled his August 2014 visit to Nepal with sensitivity and finesse, and followed it up with exceptional leadership in providing immediate earthquake relief to Nepal in May, 2015. In obtaining Parliament’s approval of the land boundary agreement with Bangladesh in May, 2015, Modi showed his determined leadership again.

    He did falter with Pakistan, seemingly unsure about whether he should wait for it to change its conduct before engaging it, or engage it nevertheless in the hope that its conduct will change for the better in future. He announced foreign-secretary-level talks during Nawaz Sharif’s visit to Delhi, but cancelled them precipitately. He ordered a robust response to Pakistan’s cease-fire violations, yet sent the foreign secretary to Islamabad in March, 2015, on an unproductive SAARC Yatra. Relations with Pakistan remain in flux. In Afghanistan, President Ashraf Ghani’s tilt towards Pakistan and China has challenged the viability of India’s Afghanistan policy. Ghani’s delayed visit to India in April 2015 did not materially alter the scenario for us, but India has kept its cool.

    Modi’s foreign policy premise, that countries give priority today to economics over politics, has been tested in his China policy, which received a course correction. After courting China economically, Modi had to establish a new balance between politics and economics. President Xi’s visit to India in September, 2014, was marred by the serious border incident in Ladakh. Modi showed a sterner side of his diplomacy by expressing serious concern over repeated border incidents and calling for resuming the stalled process of clarifying the Line of Actual Control. During his China visit in May, Modi was even more forthright by asking China to reconsider its policies, take a strategic and long-term view of our relations and address “the issues that lead to hesitation and doubts, even distrust, in our relationship”. He showed firmness in excluding from the joint statement any reference to China’s One Road One Belt initiative or to security in the Asia-Pacific region. The last minute decision to grant e-visas was puzzling, especially as the stapled visa issue remains unresolved. The economic results of his visit were less than expected, with no concrete progress on reducing the huge trade deficit and providing Indian products more market access in China. The 26 “agreements” signed in Shanghai were mostly non-binding MoUs involving the private sector and included the financing of private Indian companies by Chinese banks to facilitate orders for Chinese equipment.

    Modi’s visit to Seychelles, Mauritius and Sri Lanka in March, 2015, signified heightened attention to our critical interests in the Indian Ocean area. Modi was the first Indian prime minister to visit Seychelles in 33 years. His visit to countries in China’s periphery in May, 2015, was important for bilateral and geopolitical reasons. During his visit to South Korea the bilateral relationship was upgraded to a “special strategic partnership’, but Korea nevertheless did not support India’s permanent membership of the United Nations Security Council. Modi’s visit to Mongolia was the first by an Indian prime minister to a country whose position is geopolitically strategic from our point of view.

    Belying expectations, Modi moved decisively towards the United States of America on assuming office. He set an ambitious all-round agenda of boosting the relationship during his September, 2014, visit to Washington. In an imaginative move, he invited Obama to be the chief guest at our Republic Day on January 26, 2015. To boost the strategic partnership with the US, he forged a “breakthrough understanding” on the nuclear liability issue and for tracking arrangements for US-supplied nuclear material. Progress on the defense front was less than expected with four low-technology “pathfinder” projects agreed under the defense technology and trade initiative. The important US-India joint strategic vision for the Asia-Pacific and Indian Ocean region, issued as a stand-alone document, high-lighted the growing strategic convergences between the two countries, with China in view. A special feature of Modi’s September, 2014, US visit was his dramatic outreach to the Indian community, which has since then become a pattern in his visits abroad, whether in Australia, Canada or Beijing. No other prime minister has wooed the Indian communities abroad as Modi has done.

    President Putin’s visit to India in December, 2014, was used to underline politically that Russia remains India’s key strategic partner. Modi was effusive in stating that with Russia we have a “friendship of unmatched mutual confidence, trust and goodwill” and a “Strategic Partnership that is incomparable in content”. He was careful to convey the important message that even as India’s options for defense cooperation had widened today, “Russia will remain our most important defense partner”. Civilian nuclear cooperation with Russia got a boost with the agreement that Russia will build “at least” ten more reactors in India beyond the existing two at Kudankulam. All this was necessary to balance the strengthened strategic understanding with the US and its allies.

    Modi bolstered further our vital relations with Japan, which remains a partner of choice for India. Shinzo Abe announced $35 billion of public and private investment in India during Modi’s visit to Japan in September 2014, besides an agreement to upgrade defense relations.

    Modi’s visit to France and Germany in April, 2015, recognized Europe’s all-round importance to India and was timely. He rightly boosted the strategic partnership with France by ensuring concrete progress in the key areas of defense and nuclear cooperation by announcing the outright purchase of 36 Rafale jets and the MoU between AREVA and L&T for manufacturing high-technology reactor equipment in India. Modi’s bilateral visit to Canada in April, 2015, was the first by an Indian prime minister in 45 years. Bilateral relations were elevated to a strategic partnership and an important agreement signed for long-term supply of uranium to India.

    Relations with the Islamic world received less than required attention during the year, although the Qatar Emir visited India in March, 2015, and the political investment we made earlier in Saudi Arabia aided in obtaining its cooperation to extract our people from Yemen. Gadkari went to Iran in May, 2015, to sign the important agreement on Chabahar. Modi did well to avoid any entanglement in the Saudi-Iran and Shia-Sunni rivalry in West Asia. He met the prime minister of Israel, Benjamin Netanyahu, on the sidelines of the UN general assembly meeting in September, last year, to mark the strength of India-Israel ties. So, Modi’s handling of India’s foreign policy in his first year is impressive. He has put India on the map of the world with his self-confidence and his faith in the nation’s future.

  • Coalition strikes, fighting kill 40 rebels in Yemen’s Aden

    ADEN (TIP): Saudi-led coalition strikes against Iran-backed Shiite rebels in Yemen’s second city Aden today and ground clashes killed at least 40 Huthis and their allies, the city’s deputy governor said.

    Residents reported non-stop air raids on rebel positions across the city amid heavy fighting.

    The coalition air campaign against the rebels and allied forces loyal to former leader Ali Abdullah Saleh began on March 26 in an effort to restore UN-backed President Abedrabbo Mansour Hadi to power.

    “Coalition forces carried out qualitative and successful operations against the rebels after coordination between the coalition leadership and the Popular Resistance Council leadership” on the ground in Aden, the southern city’s deputy governor Naef al-Bakri told AFP.

    Anti-rebel forces — pro-government fighters, Sunni tribes, and southern separatists — are referred to as Popular Resistance Committees.

    Bakri did not give details on the operations but said warplanes destroyed a number of rebel vehicles and hit checkpoints in Aden’s north and northeast, adding that Popular Resistance fighters were also “provided with qualitative weapons”.

    “At least 40 rebels were killed and dozens were wounded” in air strikes and fighting, he said.

    A military source close to the Huthis confirmed to AFP that they had sustained “heavy losses”.

    Aden health chief Al-Kheder Lassouar said at least 19 civilians and anti-rebel fighters have been killed in two days of fighting there.

    Meanwhile in the capital, coalition jets hit a rebel-held air base and an arms depot on the Fajj Attan hill overlooking Sanaa. Similar strikes on Fajj Attan last month set off a chain of explosions that killed 38 civilians.

    Amnesty International warned today that “scores of casualties in Sanaa have been caused by anti-aircraft munitions shot by the Huthi armed group which detonated after landing in populated areas, killing and maiming civilians”.

    The London-based rights group’s senior crisis adviser Lama Fakih said both the coalition and the rebels “have failed to take the necessary precautions to protect civilian lives in violation of the laws of war. Instead they have carried out attacks that have had devastating consequences for the civilian population.”

    Amnesty urged the Arab coalition states “to take all feasible precautions to minimise the risks posed to civilians, as required by international humanitarian law.

    “The Huthi armed group should also move its military positions away from populated civilian areas where feasible,” the watchdog said.

  • JAPAN UNVEILS $110 BILLION PLAN FOR INFRASTRUCTURE TO COUNTER CHINA

    JAPAN UNVEILS $110 BILLION PLAN FOR INFRASTRUCTURE TO COUNTER CHINA

    TOKYO (TIP): Japan’s Prime Minister Shinzo Abe announced on Thursday a $110 billion investment plan for infrastructure projects in Asia in an apparent counter to China’s move to launch a new development bank.

    Abe said in a speech in Tokyo that Japan and the Asian Development Bank (ADB) will boost their assistance by 30 per cent to offer the massive investment aid under a five-year public-private partnership vision.

    “By attracting diverse funds, we hope to bring changes to Asia,” Abe said in prepared remarks, in the latest twist in the tussle for influence in the fast-growing region.

    “In the long run, we’d like to spread quality infrastructure and innovative infrastructure in Asia,” Abe said, according to Kyodo News.

    The sum is just slightly higher than the expected $100 billion capital of the Asian Infrastructure Investment Bank (AIIB) that Beijing and more than 50 founding member states are establishing.

    Japan and the United States were the biggest standouts earlier this year when Beijing began courting members for the AIIB.

    Washington led a high-profile, and ultimately unsuccessful, attempt to dissuade allies from taking part in the project, which critics say will not demand the same good-governance and environmental standards imposed by other international bodies, such as the ADB, a long-established body in which Tokyo plays a key role.

    However, supporters say fears over undue Chinese influence are overblown, and that the participation by more than 50 countries, including ones as diverse as Britain and Iran, will dilute Beijing’s power.

    Few observers doubt there is a need for billions of dollars of investment in infrastructure in Asia.

    The region also offers rich opportunities for countries with strong infrastructure industries, like Japan.

    But political and other risks in doing business in Asia have discouraged some businesses from making long-term investments.

  • CHINA, INDIA LIKELY TO BE LARGEST SHAREHOLDERS OF AIIB

    NEW DELHI (TIP): China will likely take a 25-30 per cent stake in the Asian Infrastructure Investment Bank (AIIB) and India is likely to be the second-largest shareholder, delegates attending a meeting of the bank’s founding members said.

    China’s share in the USD 100 billion lender will be less than 30 per cent, an Asian delegate attending the meeting in Singapore said.

    A second delegate said India’s share will be between 10 to 15 per cent. Both spoke on condition of anonymity.

    In all, Asian countries will own between 72-75 per cent of the bank, while European and other nations will own the rest.

    The three-day meeting of the China-backed AIIB is aimed at finalising the draft of articles of agreement that would decide the share of member countries and the bank’s initial capital.

    A third delegate said the talks have ended and now each country representative would take the proposals back to their governments for a final decision.

    There was no immediate comment from the AIIB or Chinese officials on the discussions in Singapore.

    A total of 57 countries have joined AIIB as its prospective founding members, throwing together countries as diverse as Iran, Israel, Britain and Laos.

    The United States and Japan have stayed out of the China-led institution, seen as a rival to the US-dominated World Bank and Japan-led Asian Development Bank, citing concerns about transparency and governance -although Tokyo for one is keeping its options open.

    AIIB’s expected launch next year is coming at a time when the space for infrastructure lending is already crowded due to the presence of major multilateral lenders and Japan’s latest move to provide $110 billion for Asian infrastructure projects.

    The amount of Japanese funds, to be invested over 5 years, tops the expected USD 100 billion capitalisation of the AIIB.

  • Secrets of the bin Laden ‘treasure-trove’ – 106  documents released

    Secrets of the bin Laden ‘treasure-trove’ – 106 documents released

    In his final years hiding in a compound in Pakistan, Osama bin Laden was a man who at once showed great love and interest in his own family while he coldly drew up quixotic plans for mass casualty attacks on Americans, according to documents seized by Navy SEALs the night he was killed.

    On May 20th  morning, the U.S. Office of the Director of National Intelligence released an unprecedented number of documents from what U.S. officials have described as the treasure-trove picked up by the SEALs at bin Laden’s compound in Abbottabad, Pakistan, on May 2, 2011.

    Totaling 103 documents, they include the largest repository of correspondence ever released between members of bin Laden’s immediate family and significant communications between bin Laden and other leaders of al Qaeda as well as al Qaeda’s communications with terrorist groups around the Muslim world.

    Also released was a list of bin Laden’s massive digital collection of English-language books, think tank reports and U.S. government documents, numbering 266 in total.

    To the end bin Laden remained obsessed with attacking Americans. In an undated letter he told jihadist militants in North Africa that they should stop “insisting on the formation of an Islamic state” and instead attack U.S. embassies in Sierra Leone and Togo and American oil companies. Bin Laden offered similar advice to the al Qaeda affiliate in Yemen, telling it to avoid targeting Yemeni police and military targets and instead prioritize attacks on American targets.

    Much of bin Laden’s advice either didn’t make it to these groups or was simply ignored because al Qaeda affiliates in Yemen and North Africa continued to attack local targets.

    ISIS, of course, didn’t exist at the time bin Laden was writing. The group, which now controls a large swath of territory in the Middle East, grew out of al Qaeda in Iraq and has charted a different path, seeking to create an Islamic state and not prioritizing attacks on the United States and its citizens.

    Taken together, these documents and reading materials paint a complex, nuanced portrait of the world’s most wanted man in the years before he was killed in the raid on his compound.

    In the letters that bin Laden exchanged with his many sons and daughters, he emerges as a much-loved and admired father who doted on his children. And in a letter he sent to one of his wives, he even comes off as a lovelorn swain.

    That’s in sharp contrast to the letters bin Laden sent to al Qaeda leaders that demanded mass casualty attacks against American targets and insisted that al Qaeda affiliates in the Middle East stop wasting their time on attacks against local government targets. “The focus should be on killing and fighting the American people,” bin Laden emphasized.

    What bin Laden was reading

    Bin Laden’s digital library is that of an avid reader whose tastes ran from “Obama’s Wars,” Bob Woodward’s account of how the Obama administration surged U.S. troops in Afghanistan in 2009 and 2010, to Noam Chomsky as well as someone who had a pronounced interest in how Western think tanks and academic institutions were analyzing al Qaeda.

    Bin Laden was a meticulous editor, and some of the memos he wrote were revised as many as 50 times. Of the thousands of versions of documents recovered from computers and digital media that the SEALs retrieved at bin Laden’s compound, the final tally numbers several hundred documents.

    The new documents show how bin Laden reacted to the events of the Arab Spring, which was roiling the Middle East in the months before his death. While bin Laden had nothing to say publicly about the momentous events in the Middle East, privately he wrote lengthy memos analyzing what was happening, pointing to the “new factor” of “the information technology revolution” that had helped spur the revolutions and characterizing them as “the most important events” in the Muslim world “in centuries.”

    Some of the documents paint an organization that understood it was under significant pressure from U.S. counterterrorism operations. One undated document explained that CIA drone attacks “led to the killing of many jihadi cadres, leaders and others,” and noted, “(T)his is something that is concerning us and exhausting us.” Several documents mention the need to be careful with operational security and to encrypt communications and also the necessity of making trips around the Afghan-Pakistan border regions only on “cloudy days” when American drones were less effective.

    Al Qaeda members knew they were short on cash, with one writing to bin Laden, “Also, there is the financial problem.”

    Some of the documents have nothing to do with terrorism. One lengthy memo from bin Laden worried about the baleful effects of climate change on the Muslim world and advocated not depleting precious groundwater stocks. Sounding more like a World Bank official than the leader of a major terrorist organization, bin Laden fretted about “food security.” He also gave elaborate instructions to an aide about the most efficacious manner to store wheat.

    Family concerns

    Many of the documents concern bin Laden’s sprawling family, which included his four wives and 20 children. Bin Laden took a minute interest in the marriage plans of his son Khalid to the daughter of a “martyred” al Qaeda commander, and he exchanged a number of letters with the mother of the bride-to-be. Bin Laden excitedly described the impending nuptials, “which our hearts have been looking forward to.”

    Bin Laden corresponded at length with his son Hamza and also with Hamza’s mother, Khairiah, who had spent around a decade in Iran under a form of house arrest following the Taliban’s fall in neighboring Afghanistan during the winter of 2001.

    Hamza wrote a heartfelt letter to bin Laden in 2009 in which he recalled how he hadn’t seen his father since he was 13, eight years earlier: “My heart is sad from the long separation, yearning to meet with you. … My eyes still remember the last time I saw you when you were under the olive tree and you gave each one of us Muslim prayer beads.”

    In 2010 the Iranians started releasing members of the bin Laden family who had been living in Iran. Bin Laden spent many hours writing letters to them and to his associates in al Qaeda about how best he could reunite with them.

    In a letter to his wife Khairiah, he wrote tenderly, “(H)ow long have I waited for your departure from Iran.”

    Bin Laden was paranoid that the Iranians –who he said were “not to be trusted” — might insert electronic tracking devices into the belongings or even the bodies of his family as they departed Iran. He told Khairiah that if she had recently visited an “official dentist” in Iran for a filling that she would need to have the filling taken out before meeting with him as he worried a tracking device might have been inserted inside.

    U.S. intelligence officials have a theory that bin Laden might have been grooming Hamza eventually to succeed him at the helm of al Qaeda because the son’s relative youth would energize al Qaeda’s base. But Hamza never made it to his father’s hiding place in Abbottabad. When the SEALs raided bin Laden’s compound, they assumed Hamza would likely be one of the adult males living there, but he wasn’t.

    U.S. intelligence officials say they don’t know where Hamza, now in his late 20s, is today.

  • Decline of American clout – Gulf countries ”loss of trust in the leadership and credibility of the US”

    Decline of American clout – Gulf countries ”loss of trust in the leadership and credibility of the US”

    A near unanimous decision by the six heads of state of the Gulf Cooperation Council not to personally attend the meeting convened by the American President is a most dramatic demonstration of the decline of American clout in a part of the West Asian region where it was the strongest. The meeting was called by the President to explain and reassure his Gulf allies about the Iran nuclear deal. The boycott is a measure of the extent of the loss of trust of the Gulf countries in the leadership and credibility of the United States. The American Administration has of course been aware of the widening gulf in mutual trust between the two sides but was probably not aware of its depth. It tried to assuage its erstwhile protégés’ sensibilities by vocally and strongly supporting the Saudi-led intervention against the Houthi-led insurrection in Yemen. It provided crucial logistic and intelligence support and deployed powerful naval armada in the Gulf of Aden, even ordering the hugely powerful   aircraft carrier USS Enterprise to those waters. Evidently, these efforts and gestures have not had the desired result.

    The causes of this disenchantment among the kingdom and its GCC allies are well known. It started with the phenomenon which prematurely came to be described as the Arab Spring. The Saudis were deeply disappointed with the American lack of decisiveness in standing behind President Mubarak and for eventually ditching him.

    They left the Americans in no doubt about their displeasure. When Morsy was overthrown, the Americans again were on the other side since they openly condemned what they called the coup against the ‘democratically elected’ leader, even though they knew that Saudi Arabia was firmly opposed to Moslem Brotherhood.

    The Saudi disillusionment with America became stronger with the developments in the Syrian civil war. The Saudis expected their American friends to be more forthright in joining the campaign to topple President Bashar Al Assad. The kingdom had never been happy with the unwillingness of the Syrian regime to align itself with them. Syria’s dominance of Lebanon, especially during the period when Rafiq Hariri was its Prime Minister, was intensely resented by the then King who considered Hariri as his protégé. (Hariri made his millions in Saudi Arabia.)

    President Obama had declared that if the Assad regime used chemical weapons, that would mean crossing a ‘red line’ for him and he would bomb the regime’s strongholds. Chemical weapons were used and Obama did nothing. The Saudis were furious at being let down. The concerted propaganda launched by them as well as Qatar had succeeded in creating a strong perception that it was the Assad government which had used the weapon of mass destruction. However, an internal investigation in Washington, at the least, found several holes in the story, compelling Mr. Obama not to carry out his threat or promise.

    The proverbial last straw which broke the camel’s back was the determined push   by the American President in the nuclear talks with Iran. Both Iran and Saudi Arabia have been polite in their public utterances and played down the intense mistrust and hostility which they entertain for each other. The fact remains that the two are rivals in the region for dominance. The sectarian divide is no doubt one important factor since the kingdom regards itself as the leader of all the Muslims in the world and the Islamic Republic considers itself as the defender of the Shia community. Shias and Sunnis deliberately downplay their differences in public discourse but the theological gap between them is unbridgeable. Worldwide, Shias are only 10 to 15 % of the Muslim Ummah and are in majority in only four countries – Iran, Iraq, Bahrain and Azerbaijan. Shia minorities have been persecuted in most Sunni majority     countries, and it is only in recent years that they have asserted themselves. Iran’s rise as the Islamic Republic has undoubtedly a lot to do with this assertiveness.

    Saudi Arabia has legitimate concerns at the rise of Iran, given the fact that its Shia population, about 10-12 %, is located in the eastern province where the kingdom’s oil resources are concentrated. If Iran comes to have an effective voice in Yemen, it might generate dissidence in the country. Sectarian considerations, while important, have been overplayed by the Saudis. Their principal concern is that if Iran succeeds in striking a deal with the US, which would permit it to retain its nuclear weapon capability, it would forever tilt the balance of power in favor of Iran. Consequently, when the talks between Iran and P-5 + 1 made progress, raising expectations about a successful conclusion by the end of June, the Saudi kingdom thought something had to be done.

    That something turned out to be the intervention in Yemen. In this adventure, they were actively encouraged and assisted by Israel whose Prime Minister has mounted a most effective campaign against the nuclear deal for his own reasons. The Saudis and Israelis are allies in this anti-Iran exercise. If the nuclear talks conclude in a mutually acceptable agreement, Iran will undoubtedly emerge as the dominant power in the region.

    Saudi Arabia has mounted a huge media blitz to convince the major powers of Iran’s active involvement on the side of the Houthis, alleging political, logistical and military support to the Houthi insurgency. Iran denies all such allegations. The U.S. has warned Iran against helping the Houthis, accusing it of everything that     the   Saudis accuse Iran of. But not all Western politicians subscribe to the claim of Iranian involvement. Even by the UN account, Yemen is flush with 40 to 60 million weapons of different sorts. Yemen’s deposed President has aligned himself with the Houthis, mainly to secure political future for his son, and he has strong following in the Yemeni army.

    If Iran miscalculates, it might force Mr. Obama to rethink the nuclear deal. He is already under tremendous pressure domestically. Mr. Netanyahu has mobilized the Republican Senators against the deal. It is to the President’s credit that he has withstood all the pressure and persevered in the negotiations. A misstep by Iran just might force Obama’s hand and call off the talks. Iran of course realizes this danger.

    Not everyone in Iran is in favor of the deal, but a huge majority is, especially the one person whose voice counts the most, namely, the Supreme Leader. It is perhaps more up to Iran to make sure that it exercises maximum restraint in the Yemeni affair. It is also Iran’s responsibility to reassure its smaller neighbors about its peaceful and good neighborly intentions towards them.

    The unprecedented public display of no-confidence by the Gulf countries in President Obama is equally a challenge for him as well as for Iran.

  • Iran releases seized Maersk cargo ship

    Iran releases seized Maersk cargo ship

    TEHRAN (TIP): Iran has released the Maersk Tigris cargo vessel seized by its patrol boats in the Strait of Hormuz last week over a business dispute, Iranian authorities said May 7.

    They said the ship was given permission to leave after Denmark’s Maersk group, which chartered the Marshall Islands-flagged vessel, promised to abide by an Iranian court decision.

    “After obtaining judicial authorisation, the ship was released on May 7,” Iran’s Ports and Maritime Organisation said in a statement.

    The seizure was in connection with an Iranian court order for Maersk to pay $3.6 million (3.2 million euros) in damages to Iranian firm Pars Oil Products Talayieh over cargo that allegedly was not delivered.

    The move caused concern for the security of shipping lanes in the strategic strait and prompted the United States to send vessels to monitor the situation.

    In a sign of reduced tensions, the Pentagon said Wednesday that the US Navy had halted a mission to accompany American-flagged vessels passing through the Strait of Hormuz.

    US warships will however remain in the area to conduct “routine maritime security operations,” spokesman Colonel Steven Warren told reporters.

    On Wednesday, Tehran denied it had detained the ship’s 24 crew members, saying they were benefiting from diplomatic assistance.

    Iranian state TV reported that the crew members were from Bulgaria, Myanmar, Romania and Britain.

  • Strategic Autonomy as an Indian Foreign Policy Option

    Strategic Autonomy as an Indian Foreign Policy Option

    [quote_right]For a large country like India, which has the potential of becoming a big power in the future, strategic autonomy is a compelling choice. By virtue of its demographic, geographic, economic and military size, India must lead, but does not have yet the comprehensive national power to do so. It cannot subordinate itself to the policies and interests of another country, however powerful, as its political tradition and the functioning of its democracy will not allow this. India may not be strong enough to lead, but it is sufficiently strong not to be led”, says the author.[/quote_right]

    In the joint statement issued during the Indian prime minister’s visit to France in April, the two sides reaffirmed “their independence and strategic autonomy” in joint efforts to tackle global challenges. In the French case, as a member of NATO it is not so clear what strategic autonomy might mean, but in our case it would essentially mean independence in making strategic foreign policy decisions, and, consequently, rejecting any alliance relationship. It would imply the freedom to choose partnerships as suits our national interest and be able to forge productive relationships with countries that may be strategic adversaries among themselves.

    In practical terms, this means that India can improve relations with the United States of America and China while maintaining close ties with Russia. It can forge stronger ties with Japan and still seek a more stable relationship with China. It can forge strong ties with Israel and maintain very productive ties with the Arab world, including backing the Palestinians in the United Nations. It means that India can have strategic partnerships with several countries, as is the case at present with the US, France, Germany, the United Kingdom, the European Union, Russia, China, Japan, Brazil, Saudi Arabia, Australia, Canada, Kazakhstan, Afghanistan, Vietnam, Iran and the like.

    It means that India can be a member of BRICS and the RIC dialogues, as well as IBSA, which exclude the West, and also forge closer political, economic and military ties with the Western countries. Our strategic autonomy is being expressed in other ways too. India is a democracy and believes that its spread favors its interests, but it is against the imposition of democracy by force on any country. If the spread of democracy is in India’s strategic interest, using force to spread it is against its strategic interest too, as is shown by the use of force to bring about democratic changes in West Asia by destroying secular authoritarian regimes and replacing them with Islamic authoritarian regimes. Likewise, India believes in respect for human rights, but is against the use of the human rights agenda to further the geo-political interests of particular countries, essentially Western, on a selective basis.

    For a large country like India, which has the potential of becoming a big power in the future, strategic autonomy is a compelling choice. By virtue of its demographic, geographic, economic and military size, India must lead, but does not have yet the comprehensive national power to do so. It cannot subordinate itself to the policies and interests of another country, however powerful, as its political tradition and the functioning of its democracy will not allow this. India may not be strong enough to lead, but it is sufficiently strong not to be led.

    India preserved its strategic autonomy even in the face of severe technology sanctions from the West on nuclear and missile issues. It preserved it by not signing the non-proliferation treaty and continuing its missile program. By going overtly nuclear in 1998, India once again exercised its strategic autonomy faced with attempts to close the doors permanently on its nuclear program by the permanent extension of the NPT and the comprehensive nuclear test ban treaty and fissile material cutoff treaty initiatives.

    In some quarters in India and abroad, the idea of strategic autonomy is contested as another manifestation of India’s non-aligned mindset, its propensity to sit on the fence, and avoid taking sides and assuming responsibility for upholding the present international order as a rising power should. These critics want India to join the US camp more firmly to realize its great power ambitions. These arguments ignore the reality that while the US has been crucial to China’s economic rise, China has been sitting on the fence for many years, even as a permanent member of the UN security council. Far from sacrificing its strategic autonomy, it has become a strategic challenger of the US.

    To be clear, the US government has officially stated its respect for India’s position on preserving its strategic autonomy, and denies any expectation that India would establish an alliance kind of relationship with it. It is looking for greater convergence in the foreign policies of the two countries, which is being realized.

    During Narendra Modi’s visit to the US in September, 2014, and Barack Obama’s visit to India in January this year, a strategic understanding on Asia Pacific and Indian Ocean issues, encapsulated in the January 2015 joint strategic vision for the Asia Pacific and the Indian Ocean has emerged. This document suggests a shift in India’s strategic thinking, with a more public position against Chinese maritime threat and a willingness to join the US in promoting partnerships in the region.

    Modi chose a striking formulation in his joint press conference with Obama in September when he said that the US was intrinsic to our Look East and Link West policies, which would suggest a growing role for the US in our foreign policy thinking. During Obama’s January visit, the joint statement noted that India’s Act East policy and the US rebalance to Asia provided opportunities for India, the US and other Asia-Pacific countries to work closely to strengthen regional ties. This was the first time that India implicitly endorsed the US rebalance towards Asia and connected our Act East policy to it.

    Rather than interpreting it as watering down our strategic autonomy, one can see it as strengthening it. So far, India has been hesitant to be seen drawing too close strategically to the US because of Chinese sensitivities. China watches closely what it sees are US efforts to rope India into its bid to contain China. At the same time, China continues its policies to strengthen its strategic posture in India’s neighborhood and in the Indian Ocean at India’s expense, besides aggressively claiming Indian territory.

    By strengthening relations with the US (which is strategically an Asian power), Japan and Vietnam, and, at the same time, seeking Chinese investments and maintaining a high-level dialogue with it, India is emulating what China does with India, which is to seek to build overall ties as much as possible on the economic front, disavow any negative anti-India element in its policies in our neighborhood, but pursue, simultaneously, strategic policies intended to contain India’s power in its neighborhood and delay its regional extension to Asia.

    In discussing the scope of our strategic autonomy, one should recognize that the strength of US-China ties, especially economic and financial, far exceeds that of India-US ties. India has to be careful, therefore, in how far it wants to go with the US with a view to improving its bargaining power with China. The other point to consider is the US-Pakistan equation. The US has just announced $1 billion of military aid to Pakistan; its position on the Taliban is against our strategic interests in Afghanistan; its stand on Pakistan’s sponsorship of terrorism against us is not robust enough.

    To conclude, strategic autonomy for India means that it would like to rely as far as possible on its own judgment on international issues, balance its relations with all major countries, forge partnerships with individual powers and take foreign-policy positions based on pragmatism and self-interest, and not any alliance or group compulsion.

    (The author is former foreign secretary of India. He can be reached at sibalkanwal@gmail.com)

  • ISIS chief Abu Bakr al-Baghdadi dead: Claims Radio Iran

    ISIS chief Abu Bakr al-Baghdadi dead: Claims Radio Iran

    NEW DELHI: The enigmatic chief of Islamic State jihadist group Abu Bakr al-Baghdadi is dead, Radio Iran has reported on Monday.

    Earlier, a Guardian report quoting sources with inside knowledge of the group reported that al-Baghdadi was severely injured in a US-led coalition air strike in March.

    According to that report, al-Baghdadi was inujred at al-Baaj district of Nineveh, close to the Syrian border. It also said he was making a slow recovery and was out of his day-to-day control of the jihadist group.

    Al-Baghdadi, believed to be in his 40s, had a $10 million US bounty on his head. Since taking the reins of the Islamic State in 2010, he had transformed it from a local branch of al-Qaida into an independent transnational military force, positioning himself as perhaps the pre-eminent figure in the global jihadist community.

    ISIS suffered a series of major setbacks in the recent months with many of its top commanders being killed or severely injured.

    Recently, a top Iraqi military commander Lieutenant General Abdul Amir al Shammari told Sky News that his forces had killed “more than 250 terrorists in the past few days”.

    He said this had been achieved with assistance from the Iraqi air force, military helicopters and coalition air strikes. “The coalition strikes provided cover for our troops to push forward.”

    Under the leadership of al-Baghdadi, the Islamic State, which called itself as the Islamic State of Iraq and Syria (ISIS) earlier, had gained ground across northern and western Iraq in a lightning advance in June and July last year, causing several of Iraq’s army and police divisions to fall into disarray.

    It had carried out thousands of public executions using brutal methods and implemented strict Islamic law in areas they captured, which sent shockwave across the global community.

     

  • Nuclear Fears in South Asia – Pak Vs Ind

    Nuclear Fears in South Asia – Pak Vs Ind

    The world’s attention has rightly been riveted on negotiations aimed at curbing Iran’s nuclear program. If and when that deal is made final, America and the other major powers that worked on it — China, Russia, Britain, France and Germany — should turn their attention to South Asia, a troubled region with growing nuclear risks of its own. 

    Pakistan, with the world’s fastest-growing nuclear arsenal, is unquestionably the biggest concern, one reinforced by several recent developments. Last week, Pakistan’s prime minister, Nawaz Sharif, announced that he had approved a new deal to purchase eight diesel-electric submarines from China, which could be equipped with nuclear missiles, for an estimated $5 billion. Last month, Pakistan test-fired a ballistic missile that appears capable of carrying a nuclear warhead to any part of India. And a senior adviser, Khalid Ahmed Kidwai, reaffirmed Pakistan’s determination to continue developing short-range tactical nuclear weapons whose only purpose is use on the battlefield in a war against India.

    These investments reflect the Pakistani Army’s continuing obsession with India as the enemy, a rationale that allows the generals to maintain maximum power over the government and demand maximum national resources. Pakistan now has an arsenal of as many as 120 nuclear weapons and is expected to triple that in a decade. An increase of that size makes no sense, especially since India’s nuclear arsenal, estimated at about 110 weapons, is growing more slowly. 

    The two countries have a troubled history, having fought four wars since independence in 1947, and deep animosities persist. Prime Minister Narendra Modi of India has made it clear that Pakistan can expect retaliation if Islamic militants carry out a terrorist attack in India, as happened with the 2008 bombing in Mumbai. But the latest major conflict was in 1999, and since then India, a vibrant democracy, has focused on becoming a regional economic and political power.

    At the same time, Pakistan has sunk deeper into chaos, threatened by economic collapse, the weakening of political institutions and, most of all, a Taliban insurgency that aims to bring down the state. Advanced military equipment — new submarines, the medium-range Shaheen-III missile with a reported range of up to 1,700 miles, short-range tactical nuclear weapons — are of little use in defending against such threats. The billions of dollars wasted on these systems would be better spent investing in health, education and jobs for Pakistan’s people.

    Even more troubling, the Pakistani Army has become increasingly dependent on the nuclear arsenal because Pakistan cannot match the size and sophistication of India’s conventional forces. Pakistan has left open the possibility that it could be the first to use nuclear weapons in a confrontation, even one that began with conventional arms. Adding short-range tactical nuclear weapons that can hit their targets quickly compounds the danger.

    Pakistan is hardly alone in its potential to cause regional instability. China, which considers Pakistan a close ally and India a potential threat, is continuing to build up its nuclear arsenal, now estimated at 250 weapons, while all three countries are moving ahead with plans to deploy nuclear weapons at sea in the Indian Ocean.

    This is not a situation that can be ignored by the major powers, however preoccupied they may be by the long negotiations with Iran.

  • Alarm bells for India? China plans to build rail link with Nepal through Mt Everest

    Alarm bells for India? China plans to build rail link with Nepal through Mt Everest

    BEIJING (TIP): China is planning to build a tunnel under Mount Everest, called Qomolangma in Tibetan, as part of its plan to extend its rail link to Nepal, the state run China Daily said on April 9.

    “The line will probably have to go through Qomolangma so that workers may have to dig some very long tunnels,” railway expert Wang Mengshu told China Daily.

    He said that the changes in elevation along the line were remarkable and added that the speed of trains on the proposed Nepal line would be restricted at 120 km per hour because of the difficult mountain terrain.

    China picking major infrastructure deals in Nepal

    This is the first time a tunnel plan has been revealed to reach Nepal. China had earlier discussed extending the Qinghai-Lhasa line to the Nepalese border without digging a tunnel.

    Sources said the idea was to find a short route to Nepal for accessing the vast Indian market. Besides, China might be trying to involve Nepal for its Bangladesh-China-India-Myanmar (BCIM) project because New Delhi has shown little enthusiasm for this corridor, sources said.

    “If the proposal becomes a reality, bilateral trade, especially in agricultural products, will get a strong boost, along with tourism and people-to-people exchange,” Wang said.

    The Nepal rail project, which has been taken up at Kathmandu’s request, will be completed by 2020, China Daily quoted a Tibetan official as saying. The project was discussed during the visit of Chinese foreign minister Wang Yi to Kathmandu in December, according to Nepalese reports.

    In August last year, China completed a 253-km long railway line extending the Lhasa line to Xigaze, the second biggest city of Tibet which is closer to the Nepalese border.

    In another move involving India’s neighborhood, China is likely to sign a deal to help Pakistan build a natural gas pipeline to Iran. The contract is expected to be signed during president Xi Jinping’s upcoming visit to Islamabad.

  • Iran minister meets Pakistan military chief amid Yemen dilemma

    Iran minister meets Pakistan military chief amid Yemen dilemma

    ISLAMABAD (TIP): Iranian foreign minister Mohammad Javad Zarif met Pakistan’s powerful military chief Thursday, as the Pakistan government wrestled with a dilemma over how to respond to a request from Saudi Arabia for Pakistani troops to fight in Yemen.

    Zarif was winding up a two-day trip during which he was expected to urge Pakistan to reject the Saudi request for troops, planes and naval support for a Saudi-led coalition against Iran-allied Houthi fighters in Yemen.

    Pakistan’s chief of Army staff general Raheel Sharif has publicly remained silent on the request. Army officials say they will defer to the civilian government.

    Saudi Arabia’s request puts Pakistan in a tight spot. The nuclear-armed nation of 180 million people has strong economic, religious and military ties to Saudi Arabia but also a long and porous border with Iran in a mineral-rich region plagued by a separatist insurgency.

    Shi’ite Iran and Sunni Saudi Arabia are rivals for power in the volatile Middle East and many in Sunni-majority Pakistan fear being caught between them if Pakistani troops are sent to Yemen. A military statement on the meeting between Zarif and Sharif emphasised border difficulties and possible defence cooperation. “Focus of the discussion remained on regional security including the evolving situation in the Middle East, Pak-Iran border management and defence and security cooperation between both the countries,” it said. “The unity and integrity of Muslim Ummah (community) and greater harmony amongst the Muslims was emphasized.” 

    A Saudi-led coalition began air strikes against Iran-backed Houthi forces in Yemen last month. Iran denies Saudi and US accusations that it has armed the Houthis, who hail from the Zaidi branch of Shi’ite Islam.

    Although the causes of the Yemen conflict are complex, analysts fear it could spark a bloody sectarian battle between proxies of Iran and Saudi Arabia that could inflame the Middle East. Pakistan’s parliament has been debating the Saudi request to join the coalition this week. Legislators emphasised brotherly ties with Saudi Arabia but no one spoke in favour of going into Yemen. “The consensus that is emerging in parliament is that Pakistan should not participate in any military offensive. We should try to mediate, influence and facilitate peaceful dialogue,” Sartaj Aziz, the prime minister’s adviser on security.

  • Bringing Yemen’s tragedy to an end – Need for a fair Shia-Sunni deal

    The civil war in Yemen, exacerbated by the intervention of outside powers, is poised at a delicate stage which could impinge on the larger picture of the Middle East’s future trajectory. The truth is that the poorest country in the region lies along several fault lines.

    They are the Shia-Sunni schism in the Muslim world, the rivalry between Saudi Arabia and Iran, the interest of outside powers such as the United States and the major European trading nations and the broader state of US-Russian relations. Despite its appeals, the United Nations is, for the present, a spectator, rather than an effective actor.

    The military intervention of Saudi Arabia and its Gulf allies by launching air strikes on Houthi rebels in Yemen, who are aided by Iran and are in the process of capturing the better part of the country, has complicated the picture. In a sense, it was inevitable because Riyadh could hardly stand aside even as a Shia sect set about conquering a Sunni majority country. The Saudis are now demanding the surrender of the Houthis before stopping their bombing runs.

    The United States is helping the Saudis by providing logistical and other technical assistance, a delicate dance for US Secretary of State John Kerry. He decries Iranian help to the Houthis. Tehran denies even as he eyes a landmark deal with Iran on its nuclear program. Pakistan, on its part, is facing a cruel dilemma in accepting the Saudi demand to join the intervention against the backdrop of its substantial Shia population at home.

    For Pakistan, the dilemma is of a state beholden to Riyadh for its generous subsidies. A contingent of Pakistani troops is permanently stationed in Saudi Arabia in part payment for Saudi goodies. Prime Minister Nawaz Sharif himself is beholden to the Saudis for saving him from possible execution in the days of Gen Pervez Musharraf rule, first giving him refuge and then re-injecting him into the Pakistani political scene.

    Grave as the dilemmas for Pakistan are, the larger picture is more menacing because of the fault lines. The most salient is the Saudi-Iranian contest in the Middle East in which Tehran is seeking to spread its wings through fortuitous circumstances and its own activism. Thanks to the American invasion of Iraq, the latter, with its Shia majority, ultimately fell into its lap. Iran is well placed in Lebanon with its allied Hezbollah movement in a confessional division of political factions.

    Bahrain remains a tempting target because it is ruled by a Sunni monarch underpinned by Saudi power over a Shia majority. Saudi apprehension over the proposed nuclear deal with Iran, shared by Israel, is that it would give Tehran greater opportunities to strengthen its regional role.

    As if the picture were not complicated enough, the growth of Sunni extremists, first in the form of Al-Qaida and its affiliates, then their evolution into ISIS and ultimately into a caliphate holding territory in the shape of the Islamic State (IS), is a fact of life. Americans have reluctantly returned to the region by undertaking bombing runs on the IS and are ironically on the same side as Iran in trying to attain this goal.

    How then is the world, or the major powers, to unscramble the mess because of the very nature of the crises? If relations between the United States and Russia were not as frigid as they are over Ukraine and other issues, they could have joined hands to bring about at least a temporary ceasefire in Yemen. After all, in the five plus one (UN Security Council permanent members plus Germany) format of talks on Iran’s nuclear program, Russia was a participant. But the prevailing animosities in what was once the Big Two make the going tough.

    Individuals and circumstances have contributed to creating the Yemen crisis. Mr. Ali Abdullah Saleh, the long-time dictator, was eased out of office with the help of Gulf monarchies in the wake of the short-lived Arab Spring in 2011. He was nursing his wounds while keeping his powder dry and still had ambitions – for son, if not for himself. He chose to ally with the Houthis while still retaining the loyalty of sections of the country’s armed forces.

    Houthis, who traditionally control the north of the country, were ready to revolt against the Sanaa dispensation presided over by an unimpressive Sunni imposed by Saudis. They felt their interests were being sacrificed and, thanks to Saleh’s support, they had the strength to overrun the capital and even try to take over Aden, the principal city of South Sudan.

    The nature of the strikes being what it is, there are reports of increasing civilian casualties. Although some humanitarian aid has now got in and India, among other countries, has managed to evacuate most of its citizens, international demands are growing by the day to stop the bombing runs and seek a political solution.

    Houthis, being a minority, cannot hope to rule Yemen. Yet, given the military prowess they have demonstrated, they will insist on a fair share of the national cake in any future framework agreement. Saudi Arabia shares a long border with Yemen and will not tolerate a Shia-dominated dispensation despite the earlier long rule of Mr. Saleh, himself a Houthi.

    For its part, Iran has already suggested that the Saudi-led action is a “mistake” and the United States is seeking to maintain a balance between the hoped-for nuclear deal with Iran and warnings to Tehran to refrain from aiding the Houthis. Ultimately, the problem will land in the lap of the United Nations, but the question is how much longer the process will take and how long the regional contestants will drag their feet before a truce is called.

    The scale of the fighting and deaths is leading to growing demands for a ceasefire. The Saudis have made their point that there cannot be a Shia-dominated dispensation along its shared border. But a compromise must include a fair sharing of power with Houthis.

  • Pakistan remains neutral in Yemen fight

    Pakistan remains neutral in Yemen fight

    Pakistan’s parliament on Friday voted against joining the Saudi-led coalition of Sunni-majority Arab states launching airstrikes against Iranian-backed Shia rebels in Yemen, dashing Riyadh’s hopes for support from outside the region in its fight to halt the fighters’ advance.

    Saudi Arabia had asked Pakistan, a fellow Sunni-majority country, to provide ships, aircraft and troops for the campaign, now in its third week. Instead, Pakistan adopted a resolution calling on all sides to resolve their differences peacefully.

    “[Parliament] desires that Pakistan should maintain neutrality in the Yemen conflict so as to be able to play a proactive diplomatic role to end the crisis,” the resolution states, while expressing “unequivocal support for the kingdom of Saudi Arabia” and promising to “stand shoulder to shoulder with Saudi Arabia and its people” if Saudi territory is violated.

    The Saudi-led coalition launched its military campaign against the rebels, dubbed Houthis after their late leader Hussein Badreddin al-Houthi, on March 26 after they advanced from the capital, Sanaa, which they seized in September, toward the southern port city of Aden.

    Saudi Arabia is concerned that the violence could spill over the border it shares with Yemen and is also worried about the growing influence of Iran, which has denied Saudi allegations it has provided direct military support to the Houthis. Many analysts fear the conflict is quickly spiraling out of control into an all-out regional proxy war.

    Iran’s Supreme Leader Ayatollah Ali Khamenei has called the Saudi-led coalition’s involvement in Yemen “genocide” and said that a diplomatic solution was needed to resolve the crisis.

    ‘Catastrophic’ situation

    Coalition missiles rained down on Yemen for a 16th straight day on Friday, targeting weapons depots used by soldiers loyal to former President Ali Abdullah Saleh, a powerful supporter of the Houthis.

    He is still influential in the military — despite giving up power in 2012 after mass protests against his rule — complicating efforts to stabilize the country.

    Troops loyal to Saleh are backing the Houthi rebels in their fight against his successor, President Abd Rabbu Mansour Hadi, a former general seen by the Shia fighters as a pawn of Sunni-majority Gulf Arab monarchies and the West. Hadi has fled to Saudi Arabia.

    In Aden, residents said electricity and water have been cut in several districts, trash has been left uncollected and hospitals have been unable to cope with the influx of wounded fighters and civilians.

    “The humanitarian situation in Aden is catastrophic and disastrous, both in terms of the rising number of killed and injured as well as in declining capabilities of medics, along with shortages in water and electricity,” said Al-Khadr Lawsar, a local Health Ministry official.

    “We call on fighters to adhere to international law and respect the work of ambulances and medical staff in the field,” he added, citing the fatal shooting of two brothers working for the Red Crescent while evacuating the wounded last week.

    Aden residents reported heavy explosions from coalition airstrikes and naval bombardment on Houthi positions, which shook windows throughout the city.

    An Indian ship captain working in Aden was killed in shelling on the city’s dockyard overnight, his company announced, and local news outlets reported that Houthi and allied army units fired mortars into the area.

    An airstrike hit a local government compound in the northern suburb of Dar Saad, and fires in Aden’s outskirts sent plumes of smoke into the air.

    Two planes carrying emergency medical aid landed in Sanaa on Friday, the first deliveries from international aid groups since the heavy fighting began. They were brought in by the International Committee of the Red Cross and UNICEF, which had been trying for weeks to gain access to the country.

     

  • OIL PRICES EDGE LOWER AS IRAN NUCLEAR DEADLINE APPROACHES

    SINGAPORE: Oil prices fell in Asia on Tuesday as dealers monitored last-ditch efforts between global powers and Iran to reach a deal on Tehran’s nuclear programme and ease sanctions imposed on the crude producer.

    US benchmark West Texas Intermediate fell 69 cents to$47.99 while Brent eased 55 cents to $55.74 in mid-day trade.

    Singapore United Overseas Bank said prices “tumbled as hopes for a nuclear deal with Iran climbed”.

    Foreign ministers of US-led major world powers are racing to beat a midnight Tuesday deadline to nail down a framework deal with Iran they hope will put an atomic bomb out of the Islamic republic’s reach.

    “There are marathon meetings happening all over the place. There are several issues that have not been resolved yet. These are important issues,” an Iranian negotiator in the Swiss city of Lausanne said late Monday.

    US Secretary of State John Kerry, in Lausanne since Wednesday for the latest in a series of meetings with Iranian counterpart Mohammad Javad Zarif that have criss-crossed the globe, said Monday there was still work to do.

    “There still remain some difficult issues,” Kerry told CNN. “We are working very hard to work those through. We are working late into the night and obviously into tomorrow.” 

  • IRAN NUCLEAR DEAL – framework announced

    IRAN NUCLEAR DEAL – framework announced

    LAUSANNE, SWITZERLAND (TIP): April 2, 2015 becomes historic as Iran Nuclear deal framework is announced. It is a significant step towards a landmark deal aimed at keeping Iran’s nuclear program peaceful. Iran would reduce its stockpile of low-enriched uranium by 98% and significantly scale back its number of installed centrifuges, according to the plan. In exchange, the United States and the European Union would lift sanctions that have crippled the country’s economy. “It is a good deal, a deal that meets our core objectives,” U.S. President Barack Obama said in a speech from the White House Rose Garden. “This framework would cut off every pathway that Iran could take to develop a nuclear weapon.”

    The deal would include strict verification measures to make sure Iran complies, he said.

    “If Iran cheats,” Obama said, “the world will know it.”

    Given below are the key parameters of a Joint Comprehensive Plan of Action (JCPOA) regarding the Islamic Republic of Iran’s nuclear program that were decided in Lausanne, Switzerland.  These elements form the foundation upon which the final text of the JCPOA will be written between now and June 30, and reflect the significant progress that has been made in discussions between the P5+1, the European Union, and Iran. Important implementation details are still subject to negotiation, and nothing is agreed until everything is agreed. “We will work to conclude the JCPOA based on these parameters over the coming months”, a White House statement said. 

    • Iran has agreed to reduce by approximately two-thirds its installed centrifuges. Iran will go from having about 19,000 installed today to 6,104 installed under the deal, with only 5,060 of these enriching uranium for 10 years. All 6,104 centrifuges will be IR-1s, Iran’s first-generation centrifuge.
    • Iran has agreed to not enrich uranium over 3.67 percent for at least 15 years.
    • Iran has agreed to reduce its current stockpile of about 10,000 kg of low-enriched uranium (LEU) to 300 kg of 3.67 percent LEU for 15 years.
    • All excess centrifuges and enrichment infrastructure will be placed in IAEA monitored storage and will be used only as replacements for operating centrifuges and equipment.
    • Iran has agreed to not build any new facilities for the purpose of enriching uranium for 15 years.
    • Iran’s breakout timeline – the time that it would take for Iran to acquire enough fissile material for one weapon – is currently assessed to be 2 to 3 months. That timeline will be extended to at least one year, for a duration of at least ten years, under this framework. Iran will convert its facility at Fordow so that it is no longer used to enrich uranium 
    • Iran has agreed to not enrich uranium at its Fordow facility for at least 15 years.
    • Iran has agreed to convert its Fordow facility so that it is used for peaceful purposes only – into a nuclear, physics, technology, research center.
    • Iran has agreed to not conduct research and development associated with uranium enrichment at Fordow for 15 years.
    • Iran will not have any fissile material at Fordow for 15 years.
    • Almost two-thirds of Fordow’s centrifuges and infrastructure will be removed. The remaining centrifuges will not enrich uranium. All centrifuges and related infrastructure will be placed under IAEA monitoring. Iran will only enrich uranium at the Natanz facility, with only 5,060 IR-1 first-generation centrifuges for ten years.
    • Iran has agreed to only enrich uranium using its first generation (IR-1 models) centrifuges at Natanz for ten years, removing its more advanced centrifuges.
    • Iran will remove the 1,000 IR-2M centrifuges currently installed at Natanz and place them in IAEA monitored storage for ten years.
    • Iran will not use its IR-2, IR-4, IR-5, IR-6, or IR-8 models to produce enriched uranium for at least ten years. Iran will engage in limited research and development with its advanced centrifuges, according to a schedule and parameters which have been agreed to by the P5+1.
    • For ten years, enrichment and enrichment research and development will be limited to ensure a breakout timeline of at least 1 year. Beyond 10 years, Iran will abide by its enrichment and enrichment R&D plan submitted to the IAEA, and pursuant to the JCPOA, under the Additional Protocol resulting in certain limitations on enrichment capacity. Inspections and Transparency 
    • The IAEA will have regular access to all of Iran’s nuclear facilities, including to Iran’s enrichment facility at Natanz and its former enrichment facility at Fordow, and including the use of the most up-to-date, modern monitoring technologies.
    • Inspectors will have access to the supply chain that supports Iran’s nuclear program. The new transparency and inspections mechanisms will closely monitor materials and/or components to prevent diversion to a secret program.
    • Inspectors will have access to uranium mines and continuous surveillance at uranium mills, where Iran produces yellowcake, for 25 years.
    • Inspectors will have continuous surveillance of Iran’s centrifuge rotors and bellows production and storage facilities for 20 years. Iran’s centrifuge manufacturing base will be frozen and under continuous surveillance.
    • All centrifuges and enrichment infrastructure removed from Fordow and Natanz will be placed under continuous monitoring by the IAEA.
    • A dedicated procurement channel for Iran’s nuclear program will be established to monitor and approve, on a case by case basis, the supply, sale, or transfer to Iran of 3 certain nuclear-related and dual use materials and technology – an additional transparency measure.
    • Iran has agreed to implement the Additional Protocol of the IAEA, providing the IAEA much greater access and information regarding Iran’s nuclear program, including both declared and undeclared facilities.
    • Iran will be required to grant access to the IAEA to investigate suspicious sites or allegations of a covert enrichment facility, conversion facility, centrifuge production facility, or yellowcake production facility anywhere in the country.
    • Iran has agreed to implement Modified Code 3.1 requiring early notification of construction of new facilities.
    • Iran will implement an agreed set of measures to address the IAEA’s concerns regarding the Possible Military Dimensions (PMD) of its program. Reactors and Reprocessing
    • Iran has agreed to redesign and rebuild a heavy water research reactor in Arak, based on a design that is agreed to by the P5+1, which will not produce weapons grade plutonium, and which will support peaceful nuclear research and radioisotope production.
    • The original core of the reactor, which would have enabled the production of significant quantities of weapons-grade plutonium, will be destroyed or removed from the country.
    • Iran will ship all of its spent fuel from the reactor out of the country for the reactor’s lifetime.
    • Iran has committed indefinitely to not conduct reprocessing or reprocessing research and development on spent nuclear fuel.
    • Iran will not accumulate heavy water in excess of the needs of the modified Arak reactor, and will sell any remaining heavy water on the international market for 15 years.
    • Iran will not build any additional heavy water reactors for 15 years. Sanctions o Iran will receive sanctions relief, if it verifiably abides by its commitments.
    • U.S. and E.U. nuclear-related sanctions will be suspended after the IAEA has verified that Iran has taken all of its key nuclear-related steps. If at any time Iran fails to fulfill its commitments, these sanctions will snap back into place.
    • The architecture of U.S. nuclear-related sanctions on Iran will be retained for much of the duration of the deal and allow for snap-back of sanctions in the event of significant non-performance.
    • All past UN Security Council resolutions on the Iran nuclear issue will be lifted simultaneous with the completion, by Iran, of nuclear-related actions addressing all key concerns (enrichment, Fordow, Arak, PMD, and transparency).
    • However, core provisions in the UN Security Council resolutions – those that deal with transfers of sensitive technologies and activities – will be re-established by a new UN Security Council resolution that will endorse the JCPOA and urge its full implementation. It will also create the procurement channel mentioned above, which will serve as a key transparency measure. Important restrictions on conventional arms and ballistic missiles, as well as provisions that allow for related cargo inspections and asset freezes, will also be incorporated by this new resolution.
    • A dispute resolution process will be specified, which enables any JCPOA participant, to seek to resolve disagreements about the performance of JCPOA commitments.
    • If an issue of significant non-performance cannot be resolved through that process, then all previous UN sanctions could be re-imposed.
    • U.S. sanctions on Iran for terrorism, human rights abuses, and ballistic missiles will remain in place under the deal.
    • For fifteen years, Iran will limit additional elements of its program. For instance, Iran will not build new enrichment facilities or heavy water reactors and will limit its stockpile of enriched uranium and accept enhanced transparency procedures. 
    • For ten years, Iran will limit domestic enrichment capacity and research and development – ensuring a breakout timeline of at least one year. Beyond that, Iran will be bound by its longer-term enrichment and enrichment research and development plan it shared with the P5+1.
    • Important inspections and transparency measures will continue well beyond 15 years. Iran’s adherence to the Additional Protocol of the IAEA is permanent, including its significant access and transparency obligations. The robust inspections of Iran’s uranium supply chain will last for 25 years.
    • Even after the period of the most stringent limitations on Iran’s nuclear program, Iran will remain a party to the Nuclear Non-Proliferation Treaty (NPT), which prohibits Iran’s development or acquisition of nuclear weapons and requires IAEA safeguards on its nuclear program.
  • SMART MOVES – Modi Government on US & China

    SMART MOVES – Modi Government on US & China

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    “The Modi government will face the test of managing closer strategic relations with the US, which are in part directed against China, and forging closer ties with China that go against this strategic thrust, besides the reality that China has actually stronger ties with the US than it can ever have with India, though the underlying tensions between the two are of an altogether different order than between India and the US.”

     

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    [quote_box_center]China[/quote_box_center] 

    Prime Minister Modi has been quick to court both US and China. His first overtures were to China, prompted no doubt by his several visits there as Chief Minister of Gujarat, Chinese investments in his home state and his general admiration for China’s economic achievements. Beyond this personal element, many in the government and corporate sectors in India believe that our politically contentious issues with China, especially the unresolved border issue, should be held in abeyance and that economic cooperation with that country should be expanded, as India can gain much from China’s phenomenal rise and the expertise it has developed in specific sectors, especially in infrastructure. It is also believed that China, which is now sitting over $4 trillion of foreign exchange reserves, has huge surplus resources to invest and India should actively tap them for its own developmental needs. In this there is continuity in thinking and policy from the previous government, with Modi, as is his wont, giving it a strong personal imprint.

    The first foreign dignitary to be received by Modi after he became Prime Minister was the Chinese Foreign Minister, representing the Chinese President. This was followed by up by his unusually long conversation on the telephone with the Chinese Prime Minister. Our Vice-President was sent to Beijing to celebrate the 60th anniversary of the Panchsheel Agreement even though China has blatantly violated this agreement and India’s high level diplomatic endorsement of it only bolsters Chinese diplomacy, especially in the context of China-created tensions in the South China and East China Seas. Modi had occasion to meet President Xi Jinxing in July at the BRICS summit in July 2014, and this was followed up by the Chinese President’s state visit to India in September 2014, during which the Prime Minister made unprecedented personal gestures to him in an informal setting in Ahmedabad.

    The dramatics of Modi’s outreach to the Chinese aside, his objectives in strengthening economic ties with China, essentially imply a consolidation of the approach followed in the last decade or so, with some course correction here and there. In this period, China made very significant headway in our power and telecom sectors, disregarding obvious security concerns associated with China’s cyber capabilities and the links of Chinese companies to the Chinese military establishment. Many of our top companies have tapped Chinese banks and financial institutions for funds, and this has produced a pro-Chinese corporate lobby in our country. This lobby will obviously highlight the advantages of economic engagement over security concerns. The previous Prime Minister followed the approach of emphasizing shared interests with China rather than highlighting differences. The position his government took on the Depsang incident in May 2013 showed his inclination to temporize rather than confront. Externally, he took the line, which Chinese leaders repeated, that the world is big enough for India and China to grow, suggesting that he did not see potential conflict with China for access to global markets and resources. Under him, India’s participation in the triangular Russia-India-China format (RIC) and the BRICS format continued, with India-originated proposal for a BRICS Development Bank eventually materializing. Indian concerns about the imbalance in trade were voiced, but without any action by China to redress the situation. India sought more access to the Chinese domestic market for our competitive IT and pharmaceutical products, as well as agricultural commodities, without success. Concerns about cheap Chinese products flooding the India market and wiping out parts of our small-scale sector were voiced now and then, but without any notable remedial steps. The Strategic Economic Dialogue set up with China, which focused primarily on the railway sector and potential Chinese investments in India, did not produce tangible results.

    The Manmohan Singh government, despite China’s aggressive claims on Arunachal Pradesh and lack of progress in talks between the Special Representatives on the boundary issue as well as concerns about China’s strategic threats to our security flowing from its policies in our neighborhood, especially towards Pakistan and Sri Lanka, declared a strategic and cooperative partnership with that country. During Manmohan Singh’s visit to China in September 2013, we signed on to some contestable formulations, as, for example, the two sides committing themselves to taking a positive view of and supporting each other’s friendship with other countries, and even more surprisingly, to support each other enhancing friendly relations with their common neighbors for mutual benefit and win-win results. This wipes off on paper our concerns about Chinese policies in our neighborhood. We supported the BCIM (Bangladesh, China, India, Myanmar) Economic Corridor, including people to people exchanges, overlooking Chinese claims on Arunachal Pradesh and the dangers of giving the Chinese access to our northeast at people to people level. The agreement to carry out civil nuclear cooperation with China was surprising, as this makes our objections to China-Pakistan nuclear ties politically illogical. We also agreed to enhance bilateral cooperation on maritime security, which serves to legitimize China’s presence in the Indian Ocean when China’s penetration into this zone poses a strategic threat to us.

    As a mark of continuity under the Modi government, during President Xi Jinxing’s September 2014 visit to India, the two sides agreed to further consolidate their Strategic and Cooperative Partnership, recognized that their developments goals are interlinked and that their respective growth processes are mutually reinforcing. They agreed to make this developmental partnership a core component of their Strategic and Cooperative Partnership. The India-China Strategic Economic Dialogue was tasked to explore industrial investment and infrastructure development.

    To address the issue of the yawning trade imbalance, measures in the field of pharmaceuticals, IT, agro-products were identified and a Five-Year Development Program for economic and Trade Cooperation to deepen and balance bilateral trade engagement was signed. Pursuant to discussions during the tenure of the previous government, the Chinese announced the establishment of two industrial parks in India, one in Gujarat and the other in Maharashtra, and the “Endeavour to realize” an investment of US $ 20 billion in the next five years in various industrial and infrastructure development projects in India, with production and supply chain linkages also in view. In the railway sector, the two sides the two sides agreed to identify the technical inputs required to increase speed on the existing railway line from Chennai to Mysore via Bangalore, with the Chinese side agreeing to provide training in heavy haul for 100 Indian railway officials and cooperating in redevelopment of existing railway stations and establishment of a railway university in India. The Indian side agreed to actively consider cooperating with the Chinese on a High Speed Rail project. In the area of financial cooperation, the Indian side approved in principle the request of the Bank of China to open a branch in Mumbai.

    The Modi government has agreed to continue defense contacts, besides holding the first round of the maritime cooperation dialogue this year, even though by engaging India in this area it disarms our objections to its increasing presence in the Indian Ocean area, besides drawing negative attention away from its policies in the South China Sea as well as projecting itself as a country committed to maritime cooperation with reasonable partners. The joint statement issued during Xi Jinxing’s visit omitted any mention of developments in western Pacific, though it contained an anodyne formulation on Asia-Pacific. This becomes relevant in view of the statements on Asia-pacific and the Indian Ocean region issued during President Obama’s visit to India in January 2015.

    Our support, even if tepid, continues for the BCIM Economic Corridor. On our Security Council permanent membership, China continues its equivocal position, stating that it “understands and supports India’s aspiration to play a greater role in the United Nations including in the Security Council”. It is careful not to pronounce support for India’s “permanent membership”. During Foreign Minister Sushma Swaraj’s visit to China for the RIC Foreign Ministers meeting, China has maintained its equivocation, although the press has wrongly presented the formulation as an advance. China is openly opposed to Japan’s candidature in view of the sharp deterioration of their ties. In India’s case, it avoids creating a political hurdle to improved ties by openly opposing India’s candidature. “A greater role” could well mean a formula of immediately re-electable non-permanent members, of the kind being proposed by a former UN Secretary General and others.

    On counter-terrorism lip service is being paid to cooperation. On Climate Change, the two countries support the principle of “equity, common but differentiated responsibilities and respective capabilities”, although the US-China agreement on emission reduction targets has created a gap in Indian and Chinese positions, with the Modi government deciding to delink itself from China in international discussions to follow.

    In diplomacy, once concessions or mistakes are made, retrieval is very difficult unless a crisis supervenes. The Modi government, for reasons that are not too clear, repeated the intention of the two countries to carry out bilateral cooperation in civil nuclear energy in line with their respective international commitments, which has the unfortunate implication of India circumscribing its own headroom to object to the China-Pakistan nuclear nexus, besides the nuance introduced that China is observing its international commitments in engaging in such cooperation. The calculation that this might make China more amenable to support India’s NSG membership may well prove to be a mistaken one. Surprisingly, stepping back from the Manmohan government’s refusal towards the end to make one-sided statements in support of China’s sovereignty over Tibet when China continues to make claims on Indian territory, the new government yielded to the Chinese ruse in making us thank the “Tibetan Autonomous Region of the People’s Republic of China” as well as the Chinese Ministry of Foreign Affairs – as if both are independent of the Chinese government- for facilitating the Kailash Mansarovar Yatra and opening the new route through Nathu La, even though this is not the  most rational route because it involves a far longer journey, made easier of course by much better infrastructure. On receiving the flood season hydrological date the Chinese have stuck to their minimalist position.

    On the sensitive border issue, the disconnect between the joint statement which repeats the usual cliches and the serious incident in Chumar coinciding with Xi’s visit was obvious. China’s double game of reaching out to India- with greater confidence now as the gap between it and India has greatly widened and it has begun to believe that India now needs China for its growth and development goals- and staging a provocation at the time of a high level visit, continues. This is a way to remind India of its vulnerability and the likely cost of challenging China’s interests, unmindful that its conduct stokes the already high levels of India’s distrust of that country. It went to Modi’s credit that he raised the border issue frontally with XI Jinping at their joint press conference, expressing “our serious concern over repeated incidents along the border” and asking that the understanding to maintain peace and tranquility on the border “should be strictly observed”. He rightly called for resuming the stalled process of clarifying the Line of Actual Control (LAC). While this more confident approach towards China is to be lauded, we are unable to persuade China to be less obdurate on the border issue because we are signaling our willingness to embrace it nonetheless virtually in all other areas.

    That Modi mentioned “India’s concerns relating to China’s visa policy and Trans Border Rivers” while standing alongside Xi Jinping at the joint press conference indicated a refreshing change from the past in terms of a more open expression of India’s concerns. With regard to Bangladesh-China-India-Myanmar Economic Corridor that China is pushing hard, Modi rightly added a caveat by declaring that “our efforts to rebuild physical connectivity in the region would also require a peaceful, stable and cooperative environment”. He also did not back another pet proposal of Xi: the Maritime Silk Road, which is a re-packaged version of the notorious “string of pearls” strategy, as the joint statement omits any mention of it.

    Even as Modi has been making his overall interest in forging stronger ties with China clear, he has not shied away from allusions to Chinese expansionism, not only on Indian soil but also during his visit to Japan. After President Obama’s visit to India and the joint statements on South China Sea and Asia-Pacific issued on the occasion which can be construed as directed at China, Foreign Minister Sushma Swaraj’s recent visit there acquired more than normal interest in watching out for indications of China’s reaction. Her call on Xi Jinping was projected, quite wrongly, as going beyond normal protocol, when in actual fact the Chinese Foreign Minister gets access to the highest levels in India during visits. Swaraj seems to have pushed for an early resolution of the border issue, with out-of-the-box thinking between the two strong leaders that lead their respective countries today. Turning the Chinese formulation on its head, she called for leaving a resolved border issue for future generations.

    That China has no intention to look at any out-of-the-box solution- unless India is willing to make a concession under cover of “original thinking”- has been made clear by the vehemence of its reaction to Modi’s recent visit to Arunachal Pradesh to inaugurate two development projects on the anniversary of the state’s formation in 1987. It has fulminated over the Modi visit over two days, summoning the Indian Ambassador to lodge a protest, inventing Tibetan names for sub-divisions within Arunachal Pradesh to mark the point that this area has been under Tibetan administrative control historically. The Chinese Vice-Foreign Minister arrogantly told our Ambassador that Modi’s visit undermined “China’s territorial sovereignty, right and interests” and “violates the consensus to appropriately handle the border issue.” China is making clear that it considers Arunachal Pradesh not “disputed territory” but China’s sovereign territory. It is also inventing a non-existent “consensus” that Indian leaders will not visit Arunachal Pradesh to respect China’s position. There is a parallel between China’s position on the Senkakus where it accuses the Japanese government to change the status quo and inviting a Chinese reaction, and its latest broadside against India. This intemperate Chinese reaction casts a shadow on Modi’s planned visit to China in May and next round of talks between the Special Representatives (SRs) on the boundary question. If without a strong riposte these planned visits go ahead we would have allowed the Chinese to shift the ground on the outstanding border issue even more in their favor. It would be advisable for our Defense Minister to visit Tawang before Modi’s visit. A very categorical enunciation of our position that goes beyond previous formulations should be made by the Indian side. The Chinese position makes the SR talks pointless, as the terms of reference China is laying down cannot be agreed to by our side.

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    [quote_box_center]UNITED STATES[/quote_box_center] 

    Prime Minister Modi, contrary to expectations, moved rapidly and decisively towards the US on assuming office. He confounded political analysts by putting aside his personal pique at having been denied a visa to visit the US for nine years for violating the US law on religious freedoms, the only individual to be sanctioned under this law. The first foreign visit by Modi to be announced was that to the US. Clearly, he believes that strong relations with the US gives India greater strategic space in foreign affairs and that its support is crucial for his developmental plans for India.

    To assess the Modi government’s policies towards the US, the results of his visit to Washington in September 2014 and that of Obama to India in January 2015 need to be analyzed, keeping in mind the approach of the previous government and the element of continuity and change that can be discerned.

    The joint statement issued during his US visit set out the future agenda of the relationship, with some goals clearly unachievable, but the ambitions of the two countries were underscored nonetheless. It was stated that both sides will facilitate actions to increase trade five-fold, implying US-China trade levels, which is not achievable in any realistic time-frame. They pledged to establish an Indo-US Investment Initiative and an Infrastructure Collaboration Platform to develop and finance infrastructure. An agreement on the Investment Initiative was signed in Washington prior to Obama’s visit to India, but bringing about capital reforms in India, which the Initiative aims at, is not something that can be realized quickly. India wants foreign investment in infrastructure and would want to tap into US capabilities in this broad sector, but the US is not in the game of developing industrial corridors like Japan or competitively building highways, ports or airports. Cooperation in the railway sector was identified, but it can only be in some specific technologies because this is the field in which Japan and China are competing for opportunities in India, whether by way of implementing high speed freight corridors or building high speed train networks in the country. India offered to the U.S. industry lead partnership in developing three smart cities, even if the concept of smart cities is not entirely clear. Some preliminary steps seem to have been taken by US companies to implement the concept. The decision to establish an annual high-level Intellectual Property (IP) Working Group with appropriate decision-making and technical-level meetings as part of this Forum was done at US insistence as IPR issues are high on the US agenda in the context of contentious issues that have arisen between the US companies and the Indian government on patent protection, compulsory licensing and local manufacturing content requirements.

    In his joint press briefing with Obama, Modi raised IT related issues, pressing Obama’s support  “for continued openness and ease of access for Indian services companies in the US market”, without obtaining a reaction from  the latter then or later when Obama visited India. On the food subsidy versus trade facilitation stand off in the WTO, Modi maintained his position firmly and compelling the US to accept a compromise. Modi’s firmness on an issue of vital political importance to India showed that he could stand up to US pressure if the country’s interest so demanded. He welcomed “the US defense companies to participate in developing the Indian defense industry”, without singling out any of the several co-development and co-production projects offered by the US as part of the Defense Technology and Trade Initiative (DTTI). Clearly, it was too early to conclude discussions on the US proposals before his September visit.

    The more broad based reference in the joint statement to India and the US intending to expand defense cooperation to bolster national, regional and global security was, on the contrary, rather bold and ambitious, the import of which became clearer during Obama’s January visit. While bolstering such cooperation for national security makes sense, regional security cannot be advanced together by both countries so long as the US continues to give military aid to Pakistan, which it is doing even now by issuing presidential waivers to overcome the provisions of the Kerry-Lugar legislation that requires Pakistan to act verifiably against terrorist groups on its soil before the aid can be released. As regards India-US defense cooperation bolstering global security, securing the sea lanes of communication in the Indian Ocean and the Asia-Pacific region is the obvious context. It was decided to renew for 10 years more the 2005 Framework for US-India Defense Relations, with defense teams of the two countries directed to “develop plans” for more ambitious programs, including enhanced technology partnerships for India’s Navy, including assessing possible areas of technology cooperation.

    The US reiterated its commitment to support India’s membership of the four technology control regimes: the Nuclear Suppliers Group (NSG), the Missile Technology Control Regime (MTCR), the Wassenaar Agreement and the Australia Group, with Obama noting that India met MTCR requirements and is ready for NSG membership, but without setting any time-tables. An actual push by the US in favor of India’s membership has been lacking because of issues of nuclear liability and administrative arrangements have remained unresolved until now and the US has wanted to use their resolution as a leverage. US support for India’s membership of these export control organizations was reiterated during Obama’s January visit, but how quickly the US will move remains unclear even after the political resolution of outstanding nuclear issues.

    The US at one time described India as a lynchpin of its pivot or rebalance towards Asia. The underlying motivation behind the pivot and US interest in drawing India into this strategy is China, though this is not stated publicly in such open terms. India has been cautious about the US pivot towards Asia as its capacity and willingness to “contain” Chinese power has been doubted because of the huge financial and commercial interdependence forged between the two countries. India seeks stable and economically productive relations with China and has wanted to avoid the risk of being used by the US to serve its China strategy that raises uncertainties in the mind of even the US allies in Asia. However, under the Modi government, India has become more affirmative in its statements about the situation in the western Pacific and the commonalities of interests between India and the US and other countries in the Indo-Pacific region. The government has decided to “Act East”, to strengthen strategic ties with Japan and Australia, as well as Vietnam, conduct more military exercises bilaterally with the US armed forces as well as naval exercises trilaterally with Japan. Modi has spoken publicly about greater India-US convergences in the Asia-Pacific region, to the point of calling the US  intrinsic to India’s Act East and Link West policies, a bold formulation in its geopolitical connotations never used before that suggested that India now viewed the US as being almost central to its foreign policy initiatives in both directions.

    On  geopolitical issues, India showed strategic boldness in the formulations that figured in the September joint statement. These laid the ground for more robust demonstration of strategic convergences between the two countries during Obama’s visit later. The reference in September to the great convergence on “peace and stability in the Asia Pacific region” was significant in terms of China’s growing assertiveness there. The joint statement spoke of a commitment to work more closely with other Asia Pacific countries, including through joint exercises, pointing implicitly to Japan and Australia, and even Vietnam. In this context, the decision to explore holding the trilateral India-US-Japan dialogue at Foreign Minister’s level- a proposition that figured also in the India-Japan joint statement during Modi’s visit there- was significant as it suggested an upgrading of the trilateral relationship at the political level, again with China in view.

    On the issue of terrorism and religious extremism, India and the US have rhetorical convergence  and some useful cooperation in specific counter-terrorism issues, but, on the whole, our concerns are  inadequately met because US regional interests are not fully aligned with those of India. The September joint statement called for the dismantling of safe havens for terrorist and criminal networks and disruption of all financial and tactical support for networks such as Al Qaeda, Lashkar-e-Taiba, Jaish-e-Mohammad, the D-company and the Haqqanis, but the Taliban were conspicuously omitted from the list. In any case, such statements against Pakistan-based terrorist groups have been made before but are ignored  by Pakistan in the absence of any real US pressure on it to curb Hafiz Saeed or credibly try Lakhvi despite repeated joint calls for bringing those responsible for the Mumbai terrorist massacre to justice.

    We had a paragraph on Iran in the joint statement in Washington, clearly at US insistence, which the Iranians would have noted with some displeasure. The Modi government is also willing to accommodate the US on Iran within acceptable limits. While the US supports India’s permanent membership of the UN Security Council, the support remains on paper as the US is not politically ready to promote the expansion of the Council.

    At Washington, India and the US agreed on an enhanced strategic partnership on climate change issues, and we committed ourselves to working with the US to make the UN Conference on Climate Change in Paris in December this year a success. This carried the risk of giving a handle to the US to ratchet up pressure to obtain some emission reduction commitments from India, encouraged  diplomatically by the US-China agreement.

    The unusually strong personal element in Modi’s diplomacy towards the US came apparent when during his Washington visit he invited Obama to be the chief guest at our Republic Day on January 26, 2015- a bold and imaginative move characteristic of his style of functioning. That this unprecedented invitation was made was surprising in itself, as was its acceptance by Obama at such short notice. Modi and Obama evidently struck a good personal equation, with the earlier alienation supplanted by empathy. Obama made the unprecedented gesture of accompanying Modi to the Martin Luther King Memorial in Washington, perhaps taking a leaf from the personal gestures made  to Modi in Japan by Prime Minister Abe.

    On the occasion of Obama’s January visit, Modi has moved decisively, if somewhat controversially, on the nuclear front, as this was the critical diplomatic moment to work for a breakthrough to underline India’s commitment to the strategic relationship with the US, which is the way that US commentators have looked at this issue. While in opposition the BJP had opposed the India-US nuclear agreement, introduced liability clauses that became a major hurdle in implementing the commitment to procure US supplied nuclear reactors for producing 10,000 MWs of power, and had even spoken of seeking a revision of the agreement whenever it came to power. During Obama’s  visit, the “breakthrough understandings” on the nuclear liability issue and that of administrative arrangements to track US supplied nuclear material or third party material passing through US supplied reactors, became the highlight of its success, with Modi himself calling nuclear cooperation issues as central to India-US ties. The supplier liability issue seems to have resolved at the level of the two governments by India’s decision to set up an insurance pool to cover supplier liability, as well as a written clarification through a Memorandum of Law on the applicability of Section 46 only to operators and not suppliers. On the national tracking issue the nature of the understanding has left some questions unanswered; it would appear that we have accepted monitoring beyond IAEA safeguards as required under the US law. However, the larger question of the commercial viability of US supplied reactors remains, a point that Modi alluded to in joint press conference. On the whole, whatever the ambiguities and shortfalls, transferring the subject away from government to company level to eliminate  the negative politics surrounding the subject is not an unwelcome development.

    For the US, defense cooperation has been another touchstone for the US to measure India’s willingness to deepen the strategic partnership. While the significant progress expected to be announced under the DTTI during Obama’s visit did not materialize, some advance was made with the announcement of four “pathfinder” projects involving minor technologies, with cooperation in the area of aircraft engines and aircraft carrier technologies to be explored later. The government has already chosen for price reasons the Israeli missile over the Javelin that was part of the several proposals made to India under the DTTI. As expected, the India-US Defense Framework Agreement of 2005 was extended for another 10 years, without disclosing the new text. It is believed  that India is now more open to discussions on the three foundational agreements that the US considers necessary for transfer of high defense technologies to India.

    The US-India Joint Strategic Vision for the Asia-Pacific and Indian Ocean Region signed during the visit is a major document which in the eyes of some reflects India’s move away from the shibboleths of the past associated with nonalignment and the obsession with strategic autonomy. Issuing a separate document was intended to highlight the growing strategic convergences between the two countries, with full awareness of how this might be interpreted by some countries, notably China. It affirms the “importance of safeguarding maritime security and ensuring freedom of navigation and overflight throughout the region , especially in the South China Sea”, while calling also on all parties to avoid the threat or use of force and pursue resolution of territorial and maritime disputes through all peaceful means in accordance with international law, including the Law of the Sea Convention. It speaks, in addition, of India and the US investing in making trilateral countries with third countries in the region, with Japan and Australia clearly in mind. This is a direct message addressed to China, reflecting less inhibition on India’s part both to pronounce on the subject and do it jointly with the US, irrespective of Chinese sensibilities. Some Chinese commentary has criticized this effort by the US to make India part of its containment strategy, without taking cognizance of how India views China’s maritime strategy in the Indian Ocean involving its strategic investments in Sri Lanka, Maldives, Pakistan and other countries. In the joint statement issued during  Obama’s visit, the two sides noted that India’s Act East Policy and the US rebalance to Asia provided opportunities to the two countries to work closely to strengthen regional ties, in what amounted to an indirect endorsement of the US pivot to Asia.

    Obama’s visit also demonstrated the consolidation of the good personal rapport established between him and Shri Modi, with embraces and first name familiarity- possibly overdone on Modi’s part- walk in the park and talk over tea, all of which boosted the prime minister’s personal stature as a man comfortable and confident in his dealings with the world’s most powerful leader on the basis of equality. This personal rapport should assist in greater White House oversight over the Administration’s policies towards India, which experience shows greatly benefits the bilateral relationship.

    Counter-terrorism is always highlighted as an expanding area of India-US cooperation because of shared threats. The joint statement in Delhi spoke dramatically of making the US-India partnership in this area a “defining” relationship for the 21st century. Does this mean that the US will share actionable intelligence on terrorist threats to us emanating from Pakistani soil? This is doubtful. The continued omission of the Afghan Taliban from the list of entities India and the US will work against is disquieting, as it indicates US determination to engage the Taliban, even when it knows that it is Pakistan’s only instrument to exert influence on developments in Afghanistan at India’s cost. The subsequent refusal of the US spokesperson to characterize the Taliban as a terrorist organization and preferring to call it an armed insurgency has only served to confirm this.

    On trade, investment and IPR issues, the two sides will continue their engagement with the impulse given to the overall relationship by the Obama-Modi exchanges. On a high standard Bilateral Investment Treaty the two sides will
    “assess the prospects for moving forward”, which indicates the hard work ahead. On the tantalization agreement the two will “hold a discussion on the elements requires in both countries to pursue” it, a language that is conspicuously non-committal. On IPRs there will be enhanced engagement in 2015 under the High Level Working Group.

    On climate change, we reiterated again the decision to work together this year to achieve a successful agreement at the UN conference in Paris, even when our respective positions are opposed on the core issue of India making specific emission reduction commitments. While stating  that neither the US nor the US-China agreement put any pressure on India, Modi spoke in his joint press conference about pressure on all countries to take steps for the sake of posterity. While  finessing the issue with high-sounding phraseology, he has left the door open for practical compromises with the US.

    As a general point, hyping-up our relations with the US is not wise as it reduces our political space to criticize its actions when we disagree. The previous government made this mistake and the Modi government is not being careful enough in this regard. Obama’s objectionable lecture to us at Siri Fort on religious freedom and his pointed reference to Article 25 of our Constitution, illustrates this. He showed unpardonable ignorance of Indian history and Hindu religious traditions in asking us to “look beyond any differences in religion” because “nowhere in the world is it going to more necessary for that foundational value to be upheld” than in India. To say that “India will succeed so long as it is not splintered around religious lines” was a wilful exaggeration of the import of some recent incidents  and amounted to playing the anti-Hindutva card by a foreign leader prompted by local Christian and “secular” lobbies. Reminding us of three national cinema and sport icons belonging only to minority religions- when their mass adulation is unconnected to their faith- was to actually encourage religiously fissured thinking in our society. On return to Washington Obama pursued his offensive line of exaggerating incidents of religious intolerance in India. On cue, a sanctimonious editorial also appeared in the New York Times. The government could not attack Obama for his insidious parting kick at Siri Fort so as not to dim the halo of a successful visit and therefore pretended that it was not directed at the Modi team. The opposition, instead of deprecating Obama’s remarks, chose to politically exploit them against Modi, as did some Obama-adoring Indians unencumbered by notions of self-respect.

    While giving gratuitous lessons on religious tolerance to the wrong country Obama announced $1 billion civil and military support to Pakistan that splintered from a united India because of religious intolerance in 1947 and has been decimating its minorities since. Obama has also invited the Chinese president to visit the US on a state visit this year, to balance his visit to India and the “strategic convergences” reached there on the Asia-Pacific region. Obama’s claim that the US can be India’s “best partner” remains to be tested as many contradictions in US policy towards India still exist.

    The Modi government will face the test of managing closer strategic relations with the US, which are in part directed against China, and forging closer ties with China that go against this strategic thrust, besides the reality that China has actually stronger ties with the US than it can ever have with India, though the underlying tensions between the two are of an altogether different order than between India and the US.

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  • CHINA NOW WORLD’S THIRD-BIGGEST ARMS EXPORTER: SIPRI

    CHINA NOW WORLD’S THIRD-BIGGEST ARMS EXPORTER: SIPRI

    BEIJING (TIP): China has overtaken Germany to become the world’s third-biggest arms exporter, although its 5 per cent of the market remains small compared to the combined 58 per cent of exports from the US and Russia, a new study says.

    China’s share of the global arms market rose 143 per cent during the years from 2010- 2014, a period during which the total volume of global arms transfers rose by 16 per cent over the previous five years, the Stockholm International Peace Research Institute said in a report released Monday.

    Its share of the world market was up from 3 per cent in the 2009-2014 period, when China was ranked ninth among exporters of warplanes, ships, side arms and other weaponry, said the institute, known as SIPRI.

    The data show the growing strength of China’s domestic arms industry, now producing fourth-generation fighter jets, navy frigates and a wide-range of relatively cheap, simple and reliable smaller weapons used in conflicts around the globe.

    China had long been a major importer of weapons, mainly from Russia and Ukraine, but its soaring economy and the copying of foreign technology has largely reversed the trend, except for the most cutting-edge designs and sophisticated parts such as aircraft engines.

    China supplies weapons to 35 countries, led by Pakistan, Bangladesh and Myanmar, SIPRI said.

    Chinese sales included those of armored vehicles and transport and trainer aircraft to Venezuela, three frigates to Algeria, anti-ship missiles to Indonesia and unmanned combat aerial vehicles, or drones, to Nigeria, which is battling the Boko Haram insurgency in its north.

    China’s comparative advantages include its low prices, easy financing and friendliness toward authoritarian governments, said Philip Saunders, director of the Center for the Study of Chinese Military Affairs at the US National Defense University.

    “Generally speaking, China offers medium quality weapons systems at affordable prices, a combination attractive to cash-strapped militaries in South Asia, Africa and Latin America,” Saunders said.

    Notable successes include a co-production deal with Pakistan to produce the JF-17 fighter, widespread sales of the basic but effective C- 802 anti-ship cruise missile, and an agreement to sell the HQ-9 air defense missile system to Turkey that has run into controversy over its incompatibility with NATO weapons systems.

    China also has exploited niche markets such as North Korea and Iran that the West won’t sell to, emphasizing its attractiveness to impoverished countries and pariah states, said Ian Easton, research fellow at The Project 2049 Institute, an Arlington, Virginia-based Asian security think tank.

    Both those US foes appear to have received satellite jamming and cyber warfare capabilities from China, along with technologies to break into private communications and spy on government opponents, Easton said.

    “All of these sales should be very disconcerting to American policymakers and military leaders,” he said, calling China’s rise to the third-place spot among exporters a “disturbing development” that could threaten the security of the US and its allies.

    China also offers leading-edge drone technology at competitive prices. One model, known variously as the Yilong, Wing Loong or Pterodactyl, has become especially popular with foreign buyers, although Chinese secrecy surrounding such sales makes it difficult to know how many are in service and where.

    Chinese state broadcaster CCTV quoted retired People’s Liberation Army Gen. Xu Guangyu saying at an air show two years ago that the unmanned aircraft, which can be armed with two guided missiles, would cost only about $1 million each. That is about 10 to 20 per cent of the price of a comparable US model such as the MQ-1 Predator. Rumored buyers include the United Arab Emirates, Uzbekistan and Saudi Arabia.

    However, China’s incremental growth and the yawning gap with industry leaders America and Russia show the limitations of its aspirations.

    The US retained a 31 per cent share of the global arms market, exporting to at least 94 recipients, SIPRI said. Countries in Asia and Oceania took 48 per cent of US exports, followed by the Middle East with 32 per cent and Europe at 11 per cent, it said.

    Russia was second with a 27 per cent global share, 39 per cent of which went to India — the world’s largest arms importer overall. China took 11 per cent of Russia’s exports, followed by Algeria.

    SIPRI uses a five-year moving average to account for fluctuations in the volume of arms deliveries from year-to-year and doesn’t provide monetary values, which are often distorted by governments providing weapons as gifts or at below-market prices.